Manomay Tex Indi reports strong financial growth in Q3, but faces challenges in managing interest costs

Manomay Tex Indi, a microcap textile company, 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 7 out of 15 in the last 3 months.

According to the financial report, Manomay Tex Indi's Profit Before Tax (PBT) has grown by 82.78% Year on Year (YoY) to Rs 6.05 crore. The company's Operating Profit (PBDIT) has also shown a positive trend, with the highest at Rs 23.18 crore and growth in each quarter of the last five quarters. The Profit After Tax (PAT) has also increased by 78.1% YoY to Rs 4.79 crore. The company's Net Sales have also seen a growth of 32.30% YoY to Rs 176.50 crore, indicating a positive sales trend.

However, there are some areas that need improvement for Manomay Tex Indi. The company's interest cost has increased by 79.35% Quarter on Quarter (QoQ) to Rs 9.38 crore, indicating increased borrowings. The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest at 2.47 times in the last five quarters.

Overall, Manomay Tex Indi has shown a positive financial performance in the quarter ending September 2024. However, the company needs to address its increasing interest cost and improve its ability to manage interest payments. MarketsMOJO has given a 'Hold' call for the company's stock.