MOIL's Q2 FY25 Financial Results Show Negative Performance and Decline in Sales and Profitability.

MOIL, a midcap mining and minerals company, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financial report, MOIL has seen a negative performance in the quarter, with a score of -10 compared to 20 in the previous quarter. This decline can be attributed to various factors, including a decrease in net sales, profit before tax, and profit after tax.

The company’s net sales for the quarter were Rs 291.89 crore, which is a significant decrease of 25.3% compared to the average net sales of the previous four quarters. This indicates a negative trend in the company’s sales in the near term.

Similarly, the profit before tax (PBT) and profit after tax (PAT) have also seen a decline of 56.5% and 44.4% respectively, compared to the average of the previous four quarters. This shows a negative trend in the company’s profitability in the near term.

MOIL’s operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, at Rs 79.18 crore. The operating profit margin was also at its lowest, indicating a deterioration in the company’s efficiency.

Moreover, the company’s non-operating income was 39.30% of its PBT, which suggests that a significant portion of its income is coming from non-business activities. This is not a sustainable business model for the company.

The earnings per share (EPS) for the quarter were also at its lowest in the last five quarters, at Rs 2.46. This shows a decline in profitability and lower earnings for shareholders.

In conclusion, MOIL’s financial performance for the quarter ending September 2024 has been negative, with a decline in sales, profitability, and efficiency. Investors should take note of these factors before making any investment decisions.