NTC Industries' Financial Results Show Mixed Performance in Q2 FY25

NTC Industries, a microcap company in the cigarettes/tobacco industry, recently declared its financial results for the quarter ending September 2024. The stock call for NTC Industries by MarketsMOJO is ‘Sell’.

According to the financials, NTC Industries has seen a negative performance in the quarter, with a score of -12 compared to -9 in the previous quarter. However, there are some positive aspects to the company’s financials. The net sales for the quarter have grown by 53.89% year on year and the trend for near term sales is very positive. The company also recorded its highest net sales in the last five quarters. The operating profit for the quarter is also at its highest in the last five quarters, indicating a positive trend.

On the other hand, there are some areas of concern for NTC Industries. The operating profit to interest ratio has been consistently falling in the last five quarters, indicating a deteriorating ability to manage interest payments. The profit after tax for the half yearly period has also seen a negative growth of -45.87% year on year. The interest cost for the quarter has increased significantly, which could be a result of increased borrowings. The company’s non-operating income is also high, which may not be sustainable in the long run. Additionally, the debt-equity ratio for the half yearly period is at its highest in the last five periods, indicating a higher reliance on borrowing.

Overall, NTC Industries has shown some positive growth in its net sales and operating profit, but there are also some concerning factors in its financials. Investors should carefully consider these factors before making any investment decisions.