National Fittings Reports Mixed Results for Q2 2024, Shows Growth in Operating Cash Flow

National Fittings, a microcap company in the castings and forgings industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, National Fittings has seen a negative performance in the second quarter of the fiscal year 2024-2025. However, there has been a slight improvement in the company's score, which has gone from -12 to -7 in the last three months.

Despite the negative performance, there are some positive aspects to National Fittings' financials. The company has shown a consistent growth in its operating cash flow, with the highest amount of Rs 9.93 crore in the last three years. Additionally, the company has also maintained a healthy amount of cash and cash equivalents, with the highest amount of Rs 33.31 crore in the last six half-yearly periods, indicating an improvement in short-term liquidity.

On the other hand, there are some areas where National Fittings needs to work on. The company's profit before tax (PBT) has fallen by 84.65% year on year, and the trend for near-term PBT is negative. Similarly, the profit after tax (PAT) has also shown a decline of 54.61% year on year, with a negative trend in the near term. The net sales have also fallen by 10.62% year on year, indicating a negative trend in the company's sales performance. Moreover, the company's earnings per share (EPS) have also decreased, with the lowest amount of Rs 0.93 in the last five quarters, showing a decline in profitability for shareholders. Additionally, the company's debtors turnover ratio has also slowed down, with the lowest amount of 12.48 times in the last five half-yearly periods, indicating a slower pace in settling its debtors.

Overall, National Fittings' financial results for the quarter ending September 2024 have shown a mix of positive and negative aspects. The company will need to address its declining profitability and sales performance to improve its financial standing in the future.