Transport Corp. of India's Q2 FY25 financials show mixed performance, highest debt to equity ratio in 5 quarters

Debt to Equity Ratio – Quarterly: Highest at 0.14 in the last five quarters.Company’s debt to equity ratio is increasing, indicating higher financial risk.

Transport Corporation of India, a midcap logistics company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Transport Corp. has shown a flat performance in the quarter, with a score of 5, which has improved from -5 in the last 3 months. However, there are some positive trends that can be seen in the company’s financials.

The net sales for the quarter were the highest in the last five quarters at Rs 1,120.80 crore, indicating a positive trend in the near term. The operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 117.10 crore, with a positive trend in the near term. The operating profit margin was also at its highest at 10.45%, showing an improvement in the company’s efficiency.

The profit before tax (PBT) less other income for the quarter was the highest in the last five quarters at Rs 107.60 crore, with a positive trend in the near term. The PBT has also grown at 24.97% year on year, indicating a positive trend in the company’s profitability. The profit after tax (PAT) for the quarter was also the highest in the last five quarters at Rs 106.40 crore, with a positive trend in the near term. The PAT has also grown at 22.3% year on year, showing an increase in the company’s profitability.

However, there are some areas that need improvement for Transport Corp. The operating cash flow for the year has been consistently falling in the last three years, with the lowest being Rs 299.31 crore. This indicates that the company’s cash revenues from business operations are declining. Additionally, the debt to equity ratio for the quarter was at its highest in the last five quarters at 0.14, showing an increase in the company’s financial risk.

Overall, Transport Corporation of India has shown a mixed performance in the quarter ending September 2024. While there are some positive trends in the company’s financials, there are also areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s future performance.