Sical Logistics' Q2 FY25 financials show mixed results, with some positive and negative trends

Sical Logistics, a microcap logistics company, recently declared its financial results for the quarter ending September 2024. The company has seen a negative financial performance in Q2 FY24-25, with a score of -9, which has improved from -20 in the last 3 months.

Despite this, there are some positive aspects to the company’s financials. The operating profit to interest ratio for the quarter was the highest in the last five quarters at 0.39 times, indicating an improvement in the company’s ability to manage interest payments. The operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 4.18 crore, showing a positive trend in the near term. Additionally, the profit before tax less other income (PBT) for the quarter was the highest in the last five quarters at Rs -16.74 crore, indicating a positive trend in the near term. The company’s cash and cash equivalents for the half-yearly period were also at its highest in the last six periods at Rs 119.94 crore, showing an improvement in short-term liquidity.

However, there are also some areas of concern for Sical Logistics. The net sales for the half-yearly period were at Rs 90.90 crore, showing a decline of -30.87% year on year. The profit after tax (PAT) for the same period was also at its lowest in the last five periods at Rs -34.26 crore, indicating a negative trend in the near term. The debt-equity ratio for the half-yearly period was also at its highest in the last five periods at 129.16 times, showing a continuous increase each half year. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

In light of these financial results, MarketsMOJO has given a ‘Strong Sell’ call for Sical Logistics’ stock. Investors should carefully consider these factors before making any investment decisions.