Monarch Networth Capital's Q2 financials show positive growth, but net profit margin declines.

This is not a good sign.Net Profit Margin (PAT) - Quarterly: Highest at 42.3 % in the last five quarters.Near term Net Profit Margin trend is negative.
Net Profit Margin (PAT) - Quarterly: At 42.3 % has Declined from 42.6 % in previous quarter.Near term Net Profit Margin trend is negative.

Monarch Networth Capital, a smallcap finance company, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, Monarch Networth has shown positive performance in the second quarter of the fiscal year 2024-25. The company's score has improved from 26 to 19 in the last three months.

One of the key highlights of the financials is the increase in net sales, which has reached its highest at Rs 104.04 crore in the last five quarters. This shows a positive trend in the company's sales performance. Additionally, the operating profit (PBDIT) has also seen a significant increase, reaching its highest at Rs 66.01 crore in the last five quarters.

The profit before tax (PBT) has also shown a positive trend, with the highest at Rs 56.35 crore in the last five quarters. This is a 28.5% increase over the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a growth of 20.3% over the average of the previous four quarters.

However, there are some areas that need improvement for Monarch Networth. The company's operating cash flow has been consistently falling in the last three years, with the lowest at Rs -134.23 crore. This indicates a decline in the company's cash revenues from business operations.

Moreover, the net profit margin (PAT) has also shown a negative trend, with a decline from 42.6% to 42.3% in the previous quarter. This is something that the company needs to address in order to maintain its profitability.

Overall, Monarch Networth's financial results for the quarter ending September 2024 show a positive performance, with some areas that need improvement. Investors are advised to hold their stocks for now, as per the recommendation by MarketsMOJO.