Kirloskar Industries Reports Negative Financial Performance in Q2 FY25

Kirloskar Industries, a smallcap company in the diversified industry, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a negative financial performance in the second quarter of the fiscal year 2024-2025. This is reflected in the score of -7, which has improved from -9 in the last three months.

However, there are some positive aspects to the company’s financials. The debt-equity ratio for the half-yearly period is at its lowest at 0.20 times and has been decreasing in the last five half-yearly periods. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

On the other hand, there are some areas that are not performing well for Kirloskar Industries. The profit before tax (PBT) less other income for the quarter has fallen by -16.6% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Additionally, the interest cost has increased by 10.37% quarter-on-quarter, which suggests that the company has taken on more borrowings.

The profit after tax (PAT) for the quarter has also fallen by -9.2% compared to the average PAT of the previous four quarters. This negative trend is expected to continue in the near term. Furthermore, the non-operating income for the quarter has increased, but this may not be sustainable as it comes from non-business activities.

Based on these financial results, MarketsMOJO has given a ‘Strong Sell’ call for Kirloskar Industries’ stock. Investors should carefully consider these factors before making any investment decisions.