Interglobe Aviation's Q2 FY25 financial results show mixed performance, with concerns over profitability.

Interglobe Aviation, one of the leading airlines in India, has recently announced its financial results for the quarter ending September 2024. The company has seen a negative performance in this quarter, with a score of -13 compared to 9 in the previous quarter.

Despite this, there are some positive aspects to the company’s financials. Interglobe Aviation has shown a strong operating cash flow annually, with a growth in the last three years. This indicates that the company has generated higher cash revenues from its business operations.

However, there are also some areas of concern in the financial results. The company’s profit before tax (PBT) has fallen by -358.56% year on year, and the profit after tax (PAT) has also decreased by -622.3% year on year. This negative trend in PBT and PAT is a cause for concern in the near term.

Additionally, the company’s operating profit to interest ratio is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The operating profit margin has also decreased, showing a decline in the company’s efficiency.

The PBT and PAT have also been at their lowest in the last five quarters, further highlighting the negative trend in the company’s profitability. The earnings per share (EPS) have also decreased, indicating a decline in the company’s profitability and lower earnings for shareholders.

On a positive note, the company’s non-operating income has increased, but it may not be sustainable as it comes from non-business activities.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for Interglobe Aviation’s stock. Investors should carefully consider these factors before making any investment decisions.