Indostar Capital Finance Reports Negative Performance in Q2 FY25 Financial Results

Indostar Capital Finance, a smallcap company in the finance/NBFC 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, Indostar Capital has seen a negative performance in the quarter, with a score of -11 compared to -7 in the previous quarter. This indicates a decline in the company’s financial health.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by -111.3% to Rs -3.06 crore compared to the average PBT of the previous four quarters, which was Rs 27.16 crore. This shows a very negative trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also fallen by -29.9% to Rs 17.86 crore compared to the average PAT of the previous four quarters, which was Rs 25.46 crore. This indicates a very negative trend in the near term for PAT.

The Net Sales for the quarter have also seen a decline of -7.0% to Rs 344.99 crore compared to the average Net Sales of the previous four quarters, which was Rs 370.86 crore. This shows a negative trend in the near term for sales.

Moreover, the company’s PBT less Other Income for the quarter is the lowest in the last five quarters at Rs -3.06 crore, indicating a negative trend in the near term.

Another concerning factor is the Non Operating Income, which is 176.12% of the PBT. This means that the company’s income from non-business activities is high, which may not be a sustainable business model. The Non Operating Income for the quarter is also the highest in the last five quarters at Rs 7.08 crore, which may not be sustainable in the long run.

Based on these financials, it is evident that Indostar Capital Finance has seen a negative performance in the quarter ending September 2024. Investors should carefully consider these factors before making any investment decisions.