IL&FS Engg.'s Q1 FY25 Financial Results Show Mixed Performance

IL&FS Engineering & Construction Co, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending June 2024. According to the data released on August 8, 2024, the company’s performance has remained flat compared to the previous quarter. However, there has been a significant improvement in its overall score, which has increased from -4 to 4 in the last three months.

One of the key highlights of IL&FS Engg.’s financials for the quarter is its net sales, which have reached a five-quarter high of Rs 85.52 crore. This represents a growth of 32.3% over the average net sales of the previous four quarters, indicating a positive trend in the company’s sales performance. Additionally, the company’s profit before tax (PBT) less other income has also reached a five-quarter high of Rs -6.96 crore, showing a positive trend in its PBT.

Another positive aspect of IL&FS Engg.’s financials is its debtors turnover ratio, which has reached a five-period high of 6.56 times. This indicates that the company has been able to settle its debtors faster, which is a good sign for its financial health.

However, there are some areas where IL&FS Engg. needs to improve based on its June 2024 financials. The company’s operating cash flow has been consistently falling over the last three years, with the latest figure being the lowest at Rs -72.75 crore. This indicates that the company’s cash revenues from business operations are declining.

Moreover, the company’s debt-equity ratio has reached a five-period high of -0.84 times, indicating that it is borrowing more to fund its operations. This could potentially lead to a stressed liquidity situation for the company.

Overall, IL&FS Engineering & Construction Co’s financial performance for the quarter ending June 2024 has been mixed, with some positive and negative trends. Investors should carefully consider these factors before making any investment decisions.