Mirza International's Q1 FY25 financials show mixed performance, with strengths and concerns

Mirza International, a microcap company in the consumer durables industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ rating by MarketsMOJO.

According to the financials, Mirza International has seen a negative performance in the quarter, with a score of -14, which is an improvement from the previous quarter’s score of -31. However, there are some positive aspects to the company’s financials.

One of the strengths of Mirza International is its operating cash flow, which has been consistently growing over the past three years and is currently at its highest at Rs 49.65 crore annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the company’s ability to manage its interest payments, with the operating profit to interest ratio being the highest in the last five quarters at 6.41 times.

However, there are also some areas of concern in Mirza International’s financials. The profit after tax (PAT) for the half-yearly period has seen a significant decline of -61.47% year on year, indicating a negative trend in the near term. Additionally, the interest cost has increased by 43.81% over the preceding nine months, which could be a result of increased borrowings.

The net sales for the quarter have also fallen by -8.9% compared to the average net sales of the previous four quarters, indicating a negative trend in the near term. The operating profit and profit before tax less other income have also been at their lowest in the last five quarters, showing a negative trend in the near term.

Furthermore, the company’s dividend payout ratio has been consistently low at 0.00% in the last five years, indicating that it is distributing a lower proportion of its profits as dividends.

Overall, Mirza International’s financial performance for the quarter ending June 2024 has been mixed, with some strengths and weaknesses. Investors should carefully consider these factors before making any investment decisions.