Phoenix International Reports Mixed Results for Q2 FY25, Shows Decreasing Debt-Equity Ratio and Increasing Profitability

Phoenix International, a microcap footwear company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a “Sell” rating by MarketsMOJO.

According to the financial report, Phoenix International’s performance in Q2 FY24-25 remained flat, with no significant changes in the last three months. However, the company has shown some positive aspects in its financials.

One of the key highlights is the debt-equity ratio, which has consistently decreased in the last five half-yearly periods, with the current ratio being the lowest at 0.20 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

Another positive aspect is the debtors turnover ratio, which has been the highest at 2.52 times in the last five half-yearly periods. This shows that Phoenix International has been able to settle its debtors at a faster rate.

In terms of profitability, the company’s profit after tax (PAT) for the nine-month period ending September 2024 was higher at Rs 2.24 crore compared to the previous 12-month period of Rs 1.74 crore. This indicates a growth in profits, as the company has already surpassed its sales from the previous year in just nine months.

However, there are also some areas of concern for Phoenix International. The net sales for the quarter were at Rs 5.77 crore, which is a decrease of 12.7% compared to the average net sales of the previous four quarters. This shows a negative trend in sales in the near term.

Moreover, the net sales for the quarter were the lowest in the last five quarters, indicating a negative trend in the company’s sales performance.

Overall, Phoenix International’s financial results for the quarter ending September 2024 show a mixed performance, with some positive aspects such as a decreasing debt-equity ratio and increasing profitability, but also some concerns regarding a negative trend in sales. Investors should carefully consider these factors before making any investment decisions.