Pilani Invest. Reports Positive Q2 Results, Interest Coverage Ratio at Lowest in 5 Years

Interest Coverage Ratio - Half Yearly: Lowest at 1.92 times in the last five half yearly periods.The company's ability to meet interest payments may be a concern for investors.

Pilani Investment & Industries Corporation, a midcap finance and non-banking financial company (NBFC), 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 and investment advisory firm.

According to the financial report, Pilani Invest. has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from -2 to 11 in the last three months, indicating a significant growth.

The company's Profit After Tax (PAT) for the quarter has increased by 43.4% year on year, reaching Rs 77.70 crore. This shows a very positive trend in the near term. The Net Sales for the quarter have also reached its highest at Rs 122.83 crore in the last five quarters, with a positive trend in the near term. The Operating Profit (PBDIT) has also shown a positive trend, reaching its highest at Rs 120.89 crore in the last five quarters. The company's efficiency has also improved, with the Operating Profit Margin reaching its highest at 98.42%.

The Profit Before Tax less Other Income (PBT) has also shown a positive trend, reaching its highest at Rs 101.33 crore in the last five quarters. The company's profitability has also increased, with the Earnings per Share (EPS) reaching its highest at Rs 70.19 in the last five quarters.

On the other hand, the Non Operating Income has increased to its highest at Rs 1.61 crore in the last five quarters, which may not be sustainable. The Interest Coverage Ratio has also reached its lowest at 1.92 times in the last five half yearly periods, which may be a concern for investors regarding the company's ability to meet interest payments.

Overall, Pilani Investment & Industries Corporation has shown a positive financial performance in the second quarter of the fiscal year 2024-2025. However, investors should carefully consider the risks associated with the company's non-operating income and interest coverage ratio before making any investment decisions.