Seasons Textiles Reports Strong Sales Growth and Improved Debtors Turnover Ratio in Q2 2024

Seasons Textiles, a microcap company in the textile industry, has recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financial report, Seasons Textiles has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 7 to 10 in the last three months.

The company's net sales for the quarter have grown by 57.48% year on year, reaching Rs 8.63 crore. This indicates a very positive sales trend in the near term. Additionally, the company's profit after tax (PAT) for the half-yearly period is higher at Rs 0.15 crore compared to the previous 12 months' PAT of Rs -0.22 crore. In just six months, the company has already surpassed its PAT for the entire previous year. Moreover, the net sales for the quarter have been the highest in the last five quarters, further highlighting a positive sales trend.

On the other hand, the company's operating cash flow for the year is at its lowest in the last three years, standing at Rs 0.86 crore. This indicates a decline in the company's cash revenues from business operations.

However, the company has been able to improve its debtors turnover ratio, which is at its highest in the last five half-yearly periods at 4.46 times. This shows that the company has been able to settle its debtors faster.

Overall, Seasons Textiles has shown a positive financial performance in the recent quarter, with a strong sales trend and improvement in debtors turnover ratio. However, the company's operating cash flow has declined, which is an area of concern. Investors are advised to hold their stocks in the company for now, as suggested by MarketsMOJO.