Orient Green Power Company Shows Positive Performance in Q2 FY25 Financial Results

Orient Green Power Company, a smallcap player in the power generation and distribution industry, has recently declared its financial results for the quarter ending September 2024. The company has shown positive performance in this quarter, with its score improving from -12 to 11 in the last three months.

One of the key factors contributing to this positive performance is the company’s strong operating cash flow, which has been consistently growing over the past three years and reached a high of Rs 249.53 crore annually. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the company’s ability to manage its interest payments, with the operating profit to interest ratio reaching a high of 5.47 times in the last five quarters. This shows that Orient Green has been improving its ability to handle its interest payments.

In terms of debt management, the company has also shown improvement, with its debt-equity ratio falling to a low of 0.54 times in the last five half-yearly periods. This indicates that Orient Green has been reducing its borrowing in comparison to its equity capital.

The company’s net sales for the quarter also reached a high of Rs 124.04 crore, showing a positive trend in the near term. Similarly, the operating profit (PBDIT) for the quarter also reached a high of Rs 102.22 crore, indicating a positive trend in the near term.

Orient Green’s efficiency has also improved, with the operating profit margin reaching a high of 82.41% in the last five quarters. Additionally, the profit before tax (PBT) less other income for the quarter reached a high of Rs 62.50 crore, showing a positive trend in the near term. The profit after tax (PAT) for the quarter also reached a high of Rs 64.92 crore, indicating a positive trend in the near term.

In terms of liquidity, the company’s cash and cash equivalents reached a high of Rs 186.87 crore in the last six half-yearly periods, showing an improvement in short-term liquidity.

However, despite these positive financial results, MarketsMOJO has given a ‘Strong Sell’ call for Orient Green’s stock. Investors should carefully consider all factors before making any investment decisions.