Tilaknagar Industries Shows Strong Financial Performance in Q2 of FY 2024-25

Tilaknagar Industries, a midcap company in the breweries and distilleries industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Buy', indicating a positive outlook for the company's performance.

According to the financials, Tilaknagar Industries has shown a very positive performance in the second quarter of the fiscal year 2024-25. The company's score has improved from 14 to 26 in the last three months, indicating a strong growth trend.

One of the key factors contributing to this growth is the company's ability to manage its interest payments, with the Operating Profit to Interest ratio being the highest at 19.70 times and growing each quarter in the last five quarters. This shows that the company's financial health is improving.

The company's Profit After Tax (PAT) for the quarter stands at Rs 58.23 crore, showing a growth of 82.4% year on year. This is a very positive trend for the company's near-term profitability.

Tilaknagar Industries has also generated a higher cash flow from its business operations, with the Operating Cash Flow being the highest at Rs 120.75 crore and growing each year in the last three years.

The company's Profit Before Tax less Other Income (PBT) for the quarter is also at its highest at Rs 54.88 crore and has grown at 74.55% year on year. This indicates a very positive trend for the company's near-term PBT.

In terms of debt management, Tilaknagar Industries has shown a positive trend with the Debt-Equity Ratio being the lowest at 0.13 times and falling each half year in the last five periods. This shows that the company has been reducing its borrowing as compared to its equity capital.

The company's Operating Profit (PBDIT) for the quarter is also at its highest at Rs 65.98 crore, indicating a positive trend for the company's near-term operating profit.

However, one area of concern for the company is its Debtors Turnover Ratio, which is at its lowest at 6.87 times in the last five half yearly periods. This shows that the company's pace of settling its debtors has slowed down.

Overall, Tilaknagar Industries has shown a strong financial performance in the quarter ending September 2024, with positive trends in key areas such as profitability, debt management, and operating efficiency. With the stock call being 'Buy' by MarketsMOJO, the company seems to be on a positive growth trajectory.