Power Finance Corporation's Net Profit Hits Lowest at Rs 1,000.00 cr in Recent Quarter.

Nov 12 2024 09:42 AM IST
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Power Finance Corporation, a largecap finance and non-banking financial company, has reported a flat performance in the second quarter of fiscal year 2024-2025. While net sales and operating profit have shown positive trends, the company's operating cash flow and net profit have been declining in the near term. Investors are advised to hold their stock for now.
Net Profit - Quarterly: Lowest at Rs 1,000.00 cr and Falleneach quarter in the last five quarters.The company's profitability has been declining in the near term.

Power Finance Corporation, a largecap finance and non-banking financial company, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a flat performance in the second quarter of the fiscal year 2024-2025. This is reflected in the score, which has fallen from 4 to 1 in the last three months.

Despite this, there are some positive aspects to the company's financials. The net sales for the quarter were the highest at Rs 25,721.79 crore and have been growing each quarter for the past five quarters. This indicates a very positive sales trend in the near term. Additionally, the operating profit (PBDIT) for the quarter was also the highest at Rs 25,354.37 crore, showing a positive trend in the near term.

Another positive aspect is the debt-equity ratio, which is the lowest at 8.27 times in the last five half-yearly periods. This indicates that the company has been reducing its borrowing compared to its equity capital.

However, there are also some areas of concern for Power Finance Corporation. The operating cash flow for the year was the lowest at Rs -97,820.41 crore and has been falling each year for the past three years. This shows that the company's cash revenues from business operations are declining.

Furthermore, the net profit for the quarter was the lowest at Rs 1,000.00 crore and has been falling each quarter for the past five quarters. This indicates a decline in the company's profitability in the near term.

In conclusion, while Power Finance Corporation has shown some positive aspects in its financial results for the quarter ending September 2024, there are also some areas of concern that need to be addressed. Investors are advised to hold their stock for now, as recommended by MarketsMOJO.
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