Lakshmi Electrical Control Systems Reports Negative Financial Performance in Q2 FY25

Lakshmi Electrical Control Systems, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The results have been declared on November 8, 2024.

According to MarketsMOJO, a leading financial analysis firm, the stock call for Lakshmi Electrical is currently ‘Strong Sell’. This is based on the company’s very negative financial performance in the second quarter of the fiscal year 2024-2025. The score has fallen from -19 to -28 in the last three months.

However, there are some positive aspects to Lakshmi Electrical’s financials. The company has shown a strong operating cash flow of Rs 15.63 crore annually, with a consistent growth over the past three years. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some concerning factors in the company’s financials. The net sales for the quarter have fallen by -47.63% year on year, indicating a very negative trend in the near term. The profit before tax less other income (PBT) has also seen a significant decline of -122.43% year on year, with a negative trend in the near term. The same can be observed for the profit after tax (PAT), which has fallen by -104.2% year on year.

The operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also hit its lowest point at 0.22%, indicating a deterioration in the company’s efficiency. The PBT less other income is also at its lowest in the last five quarters, with a negative trend in the near term.

One concerning aspect of Lakshmi Electrical’s financials is the high non-operating income, which is 189.52% of the PBT. This indicates that the company’s income from non-business activities is high, which may not be a sustainable business model. The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

It is worth noting that the non-operating income for the quarter is also at its highest in the last five quarters. While this may seem like a positive aspect, it is important to consider if this increased income from non-business activities is sustainable in the long run.

Overall, Lakshmi Electrical Control Systems has shown a very negative financial performance in the second quarter of the fiscal year 2024-2025. Investors should carefully consider these factors before making any investment decisions.