Nova Iron &Steel Reports Decline in Financial Performance for Q2 FY25

Nova Iron &Steel, a microcap company in the ferrous metal industry, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Strong Sell’ rating by MarketsMOJO.

According to the financial report, Nova Iron &Steel has seen a significant decline in its financial performance in the second quarter of the fiscal year 2024-2025. The company’s score has fallen from -3 to -21 in the last three months, indicating a very negative trend.

One of the major factors contributing to this decline is the rising interest cost. In the last nine months, the company’s interest cost has grown by 132.50%, which suggests an increase in borrowings. Additionally, the net sales for the quarter have fallen by -21.5% compared to the average net sales of the previous four quarters. This indicates a very negative trend in the company’s sales.

Moreover, the company’s profit after tax (PAT) for the quarter has also seen a significant decline of -461.6% compared to the average PAT of the previous four quarters. This further supports the negative trend in the company’s financial performance.

In terms of cash flow, Nova Iron &Steel has reported its lowest operating cash flow of Rs -10.45 Cr in the last three years. This indicates a decline in the company’s cash revenues from business operations.

Furthermore, the net sales for the quarter have also been reported as the lowest in the last five quarters, further highlighting the negative trend in the company’s sales.

Overall, the financial results for the quarter ending September 2024 show a very negative trend for Nova Iron &Steel. Investors are advised to exercise caution and consider the ‘Strong Sell’ rating given by MarketsMOJO before making any investment decisions.