Ingersoll-Rand (India) Shows Positive Performance in Q1 FY25, But Profitability Decreases Over 5 Years

Net Profit – Quarterly: Lowest at Rs 59.12 cr. in the last five quarters.Near term Net Profit trend is negative.

Return on Equity (ROE) – Annually: Lowest at 11.08% in the last five years.Company’s profitability has decreased in the last five years.

Ingersoll-Rand (India) has recently announced its financial results for the quarter ended June 2024. The company, which operates in the compressors and pumps industry, has shown positive performance in this quarter with a score of 8 out of 10, an improvement from 0 in the last three months.

One of the key factors contributing to this positive performance is the company’s operating cash flow, which has been consistently growing over the past three years and was at its highest at Rs 206.92 crore annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

In terms of profitability, Ingersoll-Rand has also shown positive trends. Its operating profit (PBDIT) for the quarter was at its highest in the last five quarters at Rs 82.82 crore, and the operating profit margin was also at its highest in the last five quarters at 26.07%. This indicates that the company’s efficiency has improved.

However, there are some areas that need improvement. The company’s cash and cash equivalents have been decreasing over the past six half-yearly periods, indicating a deterioration in short-term liquidity. Additionally, the net profit for the quarter was at its lowest in the last five quarters at Rs 59.12 crore, and the return on equity (ROE) for the year was at its lowest in the last five years at 11.08%. This suggests a decrease in profitability for the company over the past five years.

MarketsMOJO has given a ‘Hold’ call for Ingersoll-Rand’s stock based on these financial results. Investors should carefully consider these factors before making any investment decisions.