Jindal Worldwide's Q2 financial report shows mixed performance, with room for improvement.

Jindal Worldwide, a midcap textile company, recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Jindal Worldwide has shown a flat performance in the second quarter of the fiscal year 2024-25. However, there has been an improvement in the company's overall score, which has increased from -2 to 5 in the last three months.

The company's net sales for the quarter were Rs 570.81 crore, showing a growth of 45.68% year on year. This indicates a positive sales trend in the near term. Similarly, the profit before tax (PBT) has also shown a growth of 45.73% year on year, with a quarterly figure of Rs 23.04 crore. The profit after tax (PAT) has also increased by 35.9% year on year, with a quarterly figure of Rs 17.34 crore. This shows a positive trend in the near term for both PBT and PAT.

However, there are some areas where Jindal Worldwide needs to improve. The operating profit to interest ratio for the quarter is the lowest in the last five quarters, at 2.98 times. This indicates a deteriorating ability to manage interest payments. The interest cost for the quarter is also the highest in the last five quarters, at Rs 16.21 crore, showing an increase of 11.41% quarter on quarter. This signifies increased borrowings by the company.

Another area of concern is the debtors turnover ratio, which is the lowest in the last five half-yearly periods, at 3.44 times. This indicates a slower pace of settling the company's debtors.

Overall, Jindal Worldwide has shown a mixed performance in the second quarter of the fiscal year 2024-25. While there has been a positive trend in sales and profits, the company needs to address its ability to manage interest payments and improve its debtors turnover ratio. Investors should keep a close eye on the company's future financial results.