Lloyds Engineering Works Reports Positive Growth in Q2 FY25 Financial Results

Lloyds Engineering Works, a midcap company in the steel/sponge iron/pig iron industry, has recently announced its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 19 out of 100, an improvement from 15 in the previous quarter.

One of the key factors contributing to this growth is the increase in net sales, which has grown by 74.21% year on year, reaching Rs 212.15 crore. This is the highest net sales in the last five quarters, indicating a positive trend in the company’s sales. Similarly, the profit after tax (PAT) has also shown a significant growth of 48.7% year on year, reaching Rs 27.95 crore. This is the highest PAT in the last five quarters, showing a positive trend in the company’s profitability.

The company’s earnings per share (EPS) have also increased, reaching the highest at Rs 0.24 in the last five quarters. This indicates that the company has been able to create higher earnings for its shareholders.

However, there are some areas that need improvement for Lloyds Engineering Works. The operating cash flow has been consistently low, with the lowest at Rs -44.98 crore in the last three years. This indicates that the company’s cash revenues from business operations are falling. Additionally, the non-operating income has shown a significant increase, reaching the highest at Rs 5.76 crore in the last five quarters. This may not be sustainable in the long run, as it is generated from non-business activities.

Overall, Lloyds Engineering Works has shown positive growth in its financial performance for the quarter ending September 2024. However, the company needs to focus on improving its operating cash flow and reducing its reliance on non-operating income for sustainable growth. Based on these financial results, MarketsMOJO has given a ‘Hold’ call for the company’s stock.