The Hi-Tech Gear Reports Positive Financial Performance in Q1 FY25, with Improvements in Key Areas

The Hi-Tech Gear, a smallcap company in the auto ancillary industry, recently announced its financial results for the quarter ending June 2024. According to the latest report, the company’s score has fallen from 19 to 15 in the last three months, indicating a positive financial performance.

One of the key highlights of the financials 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 6.35 times. This shows an improvement in the company’s financial management.

The operating profit (PBDIT) for the quarter was also at its highest at Rs 40.94 crore, with a consistent growth trend in the last five quarters. The profit before tax (PBT) less other income has also shown a significant growth of 48.2% over the average PBT of the previous four quarters, standing at Rs 18.90 crore. This indicates a positive trend in the near term for the company’s PBT.

The half-yearly profit after tax (PAT) has also seen a growth of 23.63% year on year, standing at Rs 32.07 crore. The company’s debt-equity ratio has also improved, being the lowest at 0.64 times in the last five half-yearly periods, showing a reduction in borrowing compared to equity capital.

On the other hand, the net sales for the quarter were at its lowest at Rs 260.63 crore, with a negative trend in the near term. The cash and cash equivalents for the half-yearly period were also at its lowest at Rs 53.84 crore, indicating a deteriorating short-term liquidity.

Overall, The Hi-Tech Gear has shown a positive financial performance in the quarter ending June 2024, with improvements in key areas such as operating profit, PBT, and debt-equity ratio. However, the company needs to address the negative trend in net sales and short-term liquidity to maintain its growth in the future. Based on these financials, MarketsMOJO has given a ‘Hold’ call for the company’s stock.