I G Petrochemicals Reports Flat Performance in Q2, Positive Trends in PBT and PAT

I G Petrochemicals, a smallcap company in the chemicals 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, I G Petrochemicals has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company's score from -5 to 1 in the last three months.

The company's Profit Before Tax (PBT) has seen a significant growth of 566.2% at Rs 30.23 crore compared to the average PBT of the previous four quarters, which was Rs 4.54 crore. This indicates a positive trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also shown a growth of 169.1% at Rs 26.17 crore compared to the average PAT of the previous four quarters, which was Rs 9.73 crore. This is another positive trend for the company in the near term.

I G Petrochemicals has also recorded its highest Operating Profit (PBDIT) in the last five quarters at Rs 62.61 crore, indicating a positive trend in the near term. The company's Operating Profit Margin has also improved, reaching its highest at 10.74% in the last five quarters, showcasing an increase in efficiency.

However, there are some areas that need improvement for I G Petrochemicals. The company's interest cost has increased by 70.26% quarter on quarter, indicating a rise in borrowings. The Operating Cash Flow has also decreased to its lowest at Rs 37.19 crore in the last three years, indicating a decline in cash revenues from business operations.

Moreover, the company's Debt-Equity Ratio has reached its highest at 0.32 times in the last five half yearly periods, indicating increased borrowing to fund its operations. This may lead to a stressed liquidity situation for the company.

Overall, I G Petrochemicals has shown a mixed performance in the second quarter of the fiscal year 2024-25. Investors are advised to hold their stocks for now, as suggested by MarketsMOJO.