Incredible Industries Shows Positive Performance in Q2 FY24-25, But Some Areas Need Attention

Incredible Industries, a microcap company in the steel/sponge iron/pig iron industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Incredible Industries has shown positive performance in the second quarter of FY24-25, with a score improvement from 2 to 9 in the last three months. This is a promising sign for the company.

One of the key factors contributing to this positive performance is the growth in Profit After Tax (PAT) for the half-yearly period, which has increased by 94.62% year on year to reach Rs 3.62 crore. This is a significant improvement and shows a positive trend for the company's profitability.

Another positive aspect highlighted in the financial report is the company's Operating Cash Flow, which has been the highest in the last three years at Rs 23.83 crore. This indicates that the company has generated higher cash revenues from its business operations.

However, there are some areas where Incredible Industries needs to focus on. The Net Sales for the quarter have fallen by -6.2% compared to the average of the previous four quarters. This shows a negative trend in the company's near-term sales.

Similarly, the Operating Profit (PBDIT) for the quarter is the lowest in the last five quarters at Rs 3.08 crore. This indicates a negative trend in the near-term operating profit for the company.

Another concerning factor is the Debtors Turnover Ratio, which is the lowest in the last five half-yearly periods at 16.68 times. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Incredible Industries has shown positive financial performance in the quarter ending September 2024, with some areas of improvement and some areas that need attention. Investors are advised to hold their stock and keep an eye on the company's future financial reports.