HPL Electric & Power Reports Impressive Q2 Results, Receives 'Hold' Rating from MarketsMOJO

HPL Electric & Power, a smallcap company in the electric equipment industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'.

According to the financials, HPL Electric has shown outstanding performance in the second quarter of FY24-25, with a score improvement from 28 to 31 in the last three months. The company's operating profit to interest ratio has also been the highest at 2.80 times and has grown consistently in the last five quarters, indicating an improvement in its ability to manage interest payments.

The company's profit after tax (PAT) for the quarter stands at Rs 21.52 crore, showing a significant growth of 95.6% year on year (YoY). The near-term trend for PAT is also positive. Similarly, the operating profit (PBDIT) for the quarter is the highest at Rs 60.57 crore and has shown consistent growth in the last five quarters, indicating a positive trend in the company's operating profit.

HPL Electric's profit before tax (PBT) less other income for the quarter is also the highest at Rs 28.37 crore and has shown consistent growth in the last five quarters. The YoY growth for PBT is also impressive at 77.53%. The company's net sales for the quarter stand at Rs 422.32 crore, showing a growth of 20.51% YoY. The near-term trend for sales is also positive.

The company's operating profit margin for the quarter is the highest at 14.34% in the last five quarters, indicating an improvement in its efficiency. The earnings per share (EPS) for the quarter is also the highest at Rs 3.35, showing an increase in profitability and creating higher earnings for shareholders.

HPL Electric has also been able to reduce its debt as compared to equity capital, with a debt-equity ratio of 0.75 times, the lowest in the last five half-yearly periods. The company has also been able to settle its debtors faster, with a debtors turnover ratio of 2.30 times, the highest in the last five half-yearly periods.

Overall, HPL Electric & Power has shown a strong financial performance in the second quarter of FY24-25, with positive trends in key financial indicators. The company's ability to manage interest payments, increasing profitability, and efficient management of debtors are some of the factors contributing to its success. With a 'Hold' call from MarketsMOJO, investors can keep a close eye on HPL Electric's future performance.