Indo Count Industries' Q2 FY24-25 financials reveal mixed performance

Indo Count Industries, a midcap textile company, recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Indo Count Industries is 'Sell'.

According to the financials, the company has seen a very negative performance in the second quarter of FY24-25, with a score of -20 compared to 2 in the previous quarter. However, there are some positive aspects to the company's performance.

The net sales for the nine-month period have grown by 20.06% year on year, reaching Rs 3,070.54 crore. This indicates a positive trend in the company's sales in the near term.

On the other hand, there are some areas of concern for Indo Count Industries. The profit after tax for the quarter has fallen by -28.6% year on year, and the near term trend for PAT is very negative. The interest cost has also increased by 45.14% quarter on quarter, which suggests that the company has taken on more borrowings.

The company's ability to manage its interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The profit before tax less other income has also fallen by -19.38% year on year, and the interest cost has increased by 45.14% quarter on quarter.

Moreover, the debt-equity ratio for the half-yearly period is the highest in the last five periods, indicating that the company is borrowing more to fund its operations. This could potentially lead to a stressed liquidity situation for the company.

Another concerning factor is the debtors turnover ratio, which is the lowest in the last five half-yearly periods. This suggests that the company's pace of settling its debtors has slowed down.

Overall, the financial results for the quarter ending September 2024 for Indo Count Industries show a mix of positive and negative trends. Investors should carefully consider these factors before making any investment decisions.