Poonawalla Fincorp Reports Negative Performance in Q2 FY25, Investors Advised to Take Caution
Poonawalla Fincorp, a leading finance and non-banking financial company (NBFC) in the largecap industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.
According to the financial report, Poonawalla Fin has experienced a negative performance in the quarter, with a score of -8 compared to 15 in the previous three months. However, there are some positive aspects to the company’s financials.
The net sales for the quarter were the highest at Rs 988.87 crore and have been growing consistently for the past five quarters. This indicates a positive trend in the company’s sales in the near term.
On the other hand, the profit before tax less other income (PBT) for the quarter was at Rs -638.08 crore, which is a significant decrease of -283.4% compared to the average PBT of the previous four quarters. The same trend can be seen in the profit after tax (PAT) which has fallen by -267.6% compared to the average PAT of the previous four quarters.
The company’s operating cash flow has also been declining each year for the past three years, with the latest figure at Rs -7,556.49 crore. Additionally, the operating profit (PBDIT) for the quarter was at its lowest in the past five quarters, indicating a negative trend in the near term. The operating profit margin has also deteriorated, reaching its lowest at -27.37% in the past five quarters.
Overall, Poonawalla Fincorp’s financial performance for the quarter ending September 2024 has been negative. The company’s efficiency has decreased, and its profitability has declined, resulting in lower earnings for shareholders. Investors are advised to take note of these factors before making any investment decisions.
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