ITD Cementation India's Q2 financials show positive growth, but concerns remain

ITD Cementation India, a midcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, ITD Cem has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 35 to 16 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 is currently at its highest at Rs 704.34 crore annually. Additionally, the net sales for the first half of the year have also shown a significant growth of 26.99% year on year, indicating a positive sales trend in the near term. The company has also been able to settle its debtors faster, with a debtors turnover ratio of 6.98 times in the last five half-yearly periods.

However, there are some areas that have not performed well for ITD Cem in the September 2024 financials. The profit before tax (PBT) has fallen by -19.1% compared to the average PBT of the previous four quarters, and the profit after tax (PAT) has also seen a decline of -10.4% in the same period. This negative trend in PBT and PAT is a cause for concern in the near term. Additionally, the company's non-operating income has increased significantly in the last five quarters, but it may not be sustainable as it comes from non-business activities.

Overall, ITD Cementation India has shown a mixed performance in the September 2024 financials, with some positive and negative trends. Investors are advised to hold their stock and keep a close eye on the company's future financial results.