Kinetic Engineering's Q2 FY25 results show mixed performance, with positive PAT growth

Kinetic Engineering, a microcap company in the auto ancillary industry, recently announced its financial results for the quarter ending September 2024. The results have been declared on November 14, 2024.

According to MarketsMOJO, a leading financial analysis platform, the stock call for Kinetic Engineering is currently ‘Strong Sell’. However, the company has shown a flat financial performance in the second quarter of FY24-25, with a slight improvement in its score from -8 to -4 in the last 3 months.

On a positive note, the company’s Profit After Tax (PAT) for the quarter has seen a significant growth of 104.3% at Rs 2.15 crore, compared to the average PAT of the previous four quarters at Rs 1.05 crore. This indicates a very positive trend in the near term for the company’s profitability. Additionally, the company’s PAT for the quarter is the highest in the last five quarters, further highlighting its positive performance.

The company’s Earnings per Share (EPS) for the quarter is also at its highest in the last five quarters at Rs 0.97, indicating an increase in profitability and creating higher earnings for shareholders.

However, there are some areas that are not working in favor of Kinetic Engineering. The company’s Operating Profit to Interest ratio for the quarter is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The Net Sales for the quarter have also fallen by -6.4% at Rs 35.47 crore, compared to the average Net Sales of the previous four quarters at Rs 37.89 crore, showing a negative trend in the near term.

The company’s Operating Profit (PBDIT) for the quarter is also at its lowest in the last five quarters at Rs 0.89 crore, with a negative trend in the near term. The Operating Profit Margin for the quarter is also at its lowest in the last five quarters, indicating a decline in the company’s efficiency.

Moreover, the company’s Profit Before Tax less Other Income (PBT) for the quarter is at its lowest in the last five quarters at Rs -1.70 crore, with a negative trend in the near term. The Non Operating Income for the quarter is also at its highest in the last five quarters, which is 179.44% of the PBT. This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

In conclusion, Kinetic Engineering has shown a mixed performance in its financial results for the quarter ending September 2024. While there are some positive aspects, there are also areas that need improvement. Investors should carefully analyze the company’s financials before making any investment decisions.