Pricol Ltd's Q2 FY25 Financial Report Shows Positive Performance, But Debt to Equity Ratio at Highest in Five Quarters.

Nov 18 2024 12:53 PM IST
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Pricol Ltd, a midcap auto ancillary company, has reported a strong financial performance in the second quarter of FY24-25. The company's operating cash flow and net sales have increased, leading to a growth in profit before and after tax. However, the non-operating income and debt to equity ratio have also increased, posing a potential risk for the company.

Debt to Equity Ratio – Quarterly: Highest at 0.72 in the last five quarters.Higher debt may increase financial risk for the company.

Return on Equity (ROE) – Quarterly: At 8.85% has decreased from 10.11% in the previous quarter.Lower ROE indicates lower profitability for shareholders.


Pricol Ltd, a midcap auto ancillary company, has recently announced 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, Pricol Ltd has shown positive performance in the second quarter of FY24-25. The company’s score has improved from 23 to 13 in the last three months. This can be attributed to its strong operating cash flow, which has been the highest in the last three years at Rs 254.78 crore. Pricol Ltd has also seen a growth in its net sales, with the highest quarterly sales of Rs 668.83 crore in the last five quarters.


The company’s profit before tax (PBT) has also shown a positive trend, growing at 34.11% year on year (YoY) to reach Rs 53.87 crore in the quarter. Similarly, the profit after tax (PAT) has also increased by 36.0% YoY to reach Rs 45.07 crore. This indicates a strong financial performance for Pricol Ltd in the near term.


However, there are some areas that need improvement for the company. The non-operating income has increased in the last five quarters, which may not be sustainable in the long run. Additionally, the debt to equity ratio has also increased, reaching its highest at 0.72 in the last five quarters. This may pose a financial risk for the company. The return on equity (ROE) has also decreased from the previous quarter, indicating lower profitability for shareholders.


Overall, Pricol Ltd has shown a positive financial performance in the second quarter of FY24-25, with some areas that need attention. Investors are advised to hold their stocks in the company for now, as suggested by MarketsMOJO.


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