Sandhar Technologies Limited Shows Positive Financial Performance in Q2 2024, But Raw Material Cost a Concern.

Raw Material Cost- Quarterly: Highest at 66.4% of sales in the last five quarters.Higher raw material cost may impact profitability in the long run.

Sandhar Technologies Limited, a smallcap company in the auto ancillary industry, has recently declared its financial results for the quarter ending September 2024. According to the data, the company has shown a very positive performance in this quarter, with a score of 21 compared to 9 in the previous quarter.

One of the key highlights of the financial results is the company's ability to manage interest payments, with the Operating Profit to Interest ratio being the highest in the last five quarters at 7.19 times. This shows an improvement in the company's financial management.

The Profit After Tax (PAT) for the quarter has also seen a significant growth of 46.6% year on year, indicating a positive trend in the company's profitability. The Net Sales for the quarter have also reached a high of Rs 984.16 crore, showing a positive trend in the company's sales performance.

The company's Operating Profit (PBDIT) for the quarter has also reached a high of Rs 98.83 crore, while the Profit Before Tax (PBT) has grown at 37.07% year on year. This indicates a positive trend in the company's operating and pre-tax profits.

Sandhar Tech has also shown a decreasing trend in its Debt-Equity ratio, with the current ratio being the lowest in the last five half yearly periods at 0.68 times. This shows that the company has been reducing its borrowing as compared to equity capital.

However, there are some areas that need improvement, such as the Non Operating Income, which has reached a high of Rs 5.79 crore in the last five quarters. This may not be sustainable in the long run. Additionally, the Raw Material Cost for the quarter has been the highest in the last five quarters at 66.4% of sales, which may impact the company's profitability in the long run.

Overall, Sandhar Technologies Limited has shown a positive financial performance in the quarter ending September 2024, with improvements in key areas such as interest management, profitability, and debt management. However, there are some areas that need to be monitored closely to ensure sustainable growth in the future. Based on these results, MarketsMOJO has given a 'Hold' call for the company's stock.