IL&FS Engineering & Construction Co's Q2 FY25 financials show mixed results

IL&FS Engineering & Construction Co, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

According to the financials, IL&FS Engg. has seen a flat performance in the second quarter of FY24-25, with a score of -5 compared to 4 in the previous three months. However, there are some positive aspects to the company’s financials. The Debtors Turnover Ratio for the half-yearly period is at its highest in the last five years, indicating that the company has been able to settle its debtors faster.

On the other hand, there are some concerning factors as well. The Operating Cash Flow for the year is at its lowest in the last three years, with a fall each year. This suggests that the company’s cash revenues from business operations are declining. Additionally, the Net Sales for the quarter have fallen by -8.9% compared to the average of the previous four quarters, indicating a negative sales trend in the near term. The company’s Cash and Cash Equivalents for the half-yearly period are also at their lowest in the last six years, indicating a deteriorating short-term liquidity situation. Moreover, the Debt-Equity Ratio for the half-yearly period is at its highest in the last five years, suggesting that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

In conclusion, IL&FS Engineering & Construction Co’s financial performance for the quarter ending September 2024 has been flat, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.