Indian Card Clothing Company's Q2 FY24-25 financial report shows mixed performance

Indian Card Clothing Company, a microcap textile machinery company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Indian Card Clothing has seen a flat performance in the second quarter of FY24-25. However, there has been an improvement in the company's score from -10 to 1 in the last three months.

The company's Profit After Tax (PAT) for the quarter has shown a growth of 50.3% year on year, reaching Rs 8.33 crore. This is the highest PAT in the last five quarters and the near term trend is positive. However, the Net Sales for the quarter have fallen by -27.60% year on year, indicating a negative trend in the near term.

The Profit Before Tax (PBT) less Other Income for the quarter has also shown a significant decline of -166.26% year on year, reaching Rs -4.34 crore. The company's Non Operating Income is 150.70% of the PBT, which suggests that a large portion of the company's income is coming from non-business activities. This may not be a sustainable business model in the long run.

Moreover, the company's Dividend Payout Ratio (DPR) for the last five years is at its lowest at 0.00%. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders.

It is worth noting that the Non Operating Income for the quarter is the highest in the last five quarters, reaching Rs 12.90 crore. This increase in income from non-business activities may not be sustainable for the company.

Overall, Indian Card Clothing Company's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative trends. Investors are advised to carefully consider these factors before making any investment decisions.