HLE Glascoat's Q1 FY25 Financial Results Show Negative Performance and 'Sell' Call by MarketsMOJO

HLE Glascoat, a smallcap company in the engineering and industrial equipment industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, HLE Glascoat has seen a very negative performance in the quarter, with a score of -25 compared to -14 in the previous quarter. This decline can be attributed to various factors.

One of the major concerns is the company’s Profit Before Tax (PBT) which has fallen by 61.8% to Rs 5.15 crore from an average of Rs 13.48 crore in the previous four quarters. This indicates a very negative trend in the near term. Similarly, the Profit After Tax (PAT) has also fallen by 62.2% to Rs 3.40 crore from an average of Rs 9.00 crore in the previous four quarters.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. This is a cause for concern as it signifies increased borrowings. The interest cost has also risen by 27.86% in the half-yearly period.

In terms of sales, HLE Glascoat has seen a decline of 6.1% in the quarter, with net sales at Rs 227.07 crore compared to an average of Rs 241.94 crore in the previous four quarters. The Operating Profit (PBDIT) has also been the lowest in the last five quarters, indicating a negative trend in the near term. The Operating Profit Margin has also decreased to 9.62%, highlighting a decline in the company’s efficiency.

Overall, the financial results for the quarter ending March 2024 have not been favorable for HLE Glascoat. The company’s stock has been given a ‘Sell’ call by MarketsMOJO, indicating a negative outlook. Investors should carefully consider these factors before making any investment decisions.