Singer India's Q2 FY24-25 financials show mixed results, with significant growth in PAT but concerns over non-operating income and dividend distribution

Singer India, a leading domestic appliances company, has recently declared its financial results for the quarter ending September 2024. The company, which falls under the microcap category, has received a 'Strong Sell' call from MarketsMOJO.

According to the financial report, Singer India's performance in Q2 FY24-25 has remained flat, with a score of 2 out of 3 in the last 3 months. However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the nine-month period has shown a significant growth of 156.79% year on year, reaching Rs 4.16 crore. This trend is a positive sign for the company.

Moreover, the PAT for the nine-month period is higher than the preceding 12-month period, indicating that the company has already surpassed its sales from the previous year. However, there are some areas of concern as well. The Non-Operating Income for the quarter is 96.41% of the Profit Before Tax (PBT), which suggests that the company's income from non-business activities is high and may not be a sustainable business model.

Additionally, Singer India's Dividend per Share (DPS) for the year is at its lowest in the last five years, at Rs 0.00. This is lower than the previous years, indicating a decrease in dividend distribution. The Dividend Payout Ratio (DPR) for the year is also at its lowest in the last five years, at 0.00%. This means that the company is distributing a lower proportion of its profits as dividends.

Overall, Singer India's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.