NELCO Reports Flat Q3 FY24-25 Results Amid Debt Reduction and Profit Decline

NELCO, a small-cap player in the defence industry, has reported its financial results for the third quarter of FY24-25, indicating a flat performance. The company has experienced an adjustment in its evaluation, with its financial score moving to -3 from -12 over the past three months.
In terms of financial health, NELCO has achieved a notable reduction in its debt-equity ratio, which now stands at 0.40 times, marking the lowest level in the last five half-yearly periods. This reflects a strategic decrease in borrowing relative to equity capital. However, the company is facing challenges, as its Profit After Tax (PAT) for the half-year has declined to Rs 9.05 crore, which represents a year-on-year decrease of 23.56%. This trend suggests potential concerns regarding near-term profitability.

Additionally, NELCO's cash and cash equivalents have reached a low of Rs 11.19 crore, indicating challenges in short-term liquidity. On a more positive note, the company recorded its highest non-operating income in the last five quarters at Rs 1.52 crore, although the sustainability of this increase remains uncertain.

Discover the Latest Mojo Score and Financial Trend Performance - SignUp in less than 2 Minutes and get FREE Premium Access.