Piccadily Agro Industries Shows Positive Financial Performance in Q2 FY25, Receives 'Hold' Call from MarketsMOJO

Piccadily Agro Industries, a midcap company in the sugar industry, has recently declared its financial results for the quarter ending September 2024. The company has received a ‘Hold’ call from MarketsMOJO, a leading financial analysis platform.

According to the financial report, Piccadily Agro has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company’s score has improved from 7 to 8 in the last three months, indicating a positive trend.

The company’s Profit After Tax (PAT) for the half-yearly period has grown by 71.17% year on year, reaching Rs 37.71 crore. This shows a very positive trend in the near term. Similarly, the Net Sales for the nine-month period has grown by 21.91% year on year, reaching Rs 649.50 crore, indicating a positive trend in the near term.

Piccadily Agro has also shown a strong operating cash flow, with the highest amount of Rs 51.03 crore generated in the last three years. The company’s cash and cash equivalents for the half-yearly period have also reached the highest amount of Rs 233.74 crore in the last six half-yearly periods, indicating an improvement in short-term liquidity.

On the other hand, the company’s interest cost has increased by 37.25% quarter on quarter, reaching Rs 5.49 crore. This signifies increased borrowings by the company. The Dividend Payout Ratio (DPR) for the last five years has been the lowest at 0.00%, indicating that the company is distributing a lower proportion of its profits as dividends. Additionally, the company’s non-operating income has increased in the last five quarters, reaching the highest amount of Rs 1.08 crore. This may not be sustainable as it is generated from non-business activities.

Overall, Piccadily Agro Industries has shown a positive financial performance in the quarter ending September 2024. However, there are some areas that need improvement, such as the increasing interest cost and lower dividend payout ratio. Investors are advised to hold their stocks in the company for now, as suggested by MarketsMOJO.