Jayaswal Neco Industries Reports Negative Financial Performance in Q2 FY24-25

Jayaswal Neco Industries, a smallcap company in the steel/sponge iron/pig iron industry, recently declared its financial results for the quarter ending September 2024. According to the data, the company has seen a negative financial performance in Q2 FY24-25, with a decline in key metrics such as Profit Before Tax (PBT) and Profit After Tax (PAT).

The PBT for the quarter was at Rs -47.16 crore, a significant decrease of -138.55% compared to the same period last year. Similarly, the PAT for the quarter was at Rs -34.21 crore, a decline of -137.3% year on year. This trend is also reflected in the company's operating cash flow, which has been falling each year for the past three years.

The net sales for the quarter were at Rs 1,230.06 crore, a decrease of -18.07% year on year. This negative trend in sales has been consistent in the past five quarters. The PBT and PAT have also been consistently declining in the last five quarters, with the current quarter recording the lowest figures.

One of the major concerns for Jayaswal Neco Industries is the rising interest cost, which has grown at 31.78% over the preceding nine months period. This signifies increased borrowings by the company. The declining profitability and lower earnings per share (EPS) also raise concerns for shareholders.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Jayaswal Neco Industries' stock. The company's performance in the recent quarter has not been favorable, and the near-term trend is expected to remain negative. Investors should carefully consider these factors before making any investment decisions.