Kabra Extrusion Technik reports strong financial performance in Q2 FY25

Kabra Extrusion Technik, a smallcap company in the engineering industry, has 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 financial report, Kabra Extrusion has shown positive performance in the quarter, with a score improvement from -16 to 6 in the last three months. This is a significant improvement and reflects the company’s strong financial standing.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 180.91% year on year. The company’s Profit After Tax (PAT) has also seen a significant growth of 119.0% year on year. This indicates a strong financial trend in the near term.

Kabra Extrusion has also shown a strong operating cash flow, with the highest amount of Rs 32.26 crore in the last three years. This shows that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the company’s Operating Profit Margin, which has reached its highest at 17.45% in the last five quarters. This indicates an improvement in the company’s efficiency.

However, there are some areas that need improvement, as seen in the financial report. The Net Sales for the quarter have fallen by -29.82% year on year, indicating a negative trend in the near term. Additionally, the Dividend Payout Ratio (DPR) has also decreased each year in the last five years, with the lowest being 31.03%. This suggests that the company is distributing a lower proportion of its profits as dividends.

Overall, Kabra Extrusion Technik has shown a positive financial performance in the quarter ending September 2024. With a strong PBT and PAT growth, as well as a high operating cash flow, the company is on a positive trajectory. However, it is important to note the decline in net sales and DPR, which may require attention in the future. Investors are advised to hold their stock in Kabra Extrusion for now, as per MarketsMOJO’s recommendation.