ISMT's Q1 FY25 financials show mixed results, with some strengths and concerns

ISMT, a smallcap company in the iron and steel industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for ISMT is ‘Hold’.

The company’s financial performance for the quarter has been negative, with a score of -8 compared to -1 in the previous quarter. However, there are some positive aspects to ISMT’s financials based on the June 2024 results.

One of the strengths of ISMT is its Debtors Turnover Ratio, which is the highest at 8.38 times in the last five half yearly periods. This indicates that the company has been able to settle its debtors faster.

On the other hand, there are some areas of concern for ISMT based on the June 2024 financials. The Profit Before Tax less Other Income (PBT) has fallen by -41.7% compared to the average PBT of the previous four quarters. The Profit After Tax (PAT) has also fallen by -37.9% compared to the average PAT of the previous four quarters. The Net Sales for the quarter have also decreased by -12.4% compared to the average Net Sales of the previous four quarters. In fact, the Net Sales for the quarter are the lowest in the last five quarters. The Operating Profit (PBDIT) for the quarter is also the lowest in the last five quarters, indicating a negative trend in the near term. The Operating Profit Margin for the quarter is also the lowest in the last five quarters, suggesting a deterioration in the company’s efficiency. Additionally, the Cash and Cash Equivalents for the half yearly period are the lowest in the last six periods, indicating a decline in short term liquidity.

Overall, ISMT’s financial performance for the quarter ending June 2024 has been negative, with some areas of strength and concern. Investors are advised to hold their position in the stock, according to MarketsMOJO.