Transwarranty Finance Reports Positive Financial Performance in Q2 FY25. Investors Should Consider Non-Operating Income.

Nov 18 2024 09:49 AM IST
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Transwarranty Finance, a microcap NBFC, has reported positive financial results for the second quarter of fiscal year 2024-2025. The company's PAT has increased by 137.12% and net sales have grown by 32.66% compared to the previous year. However, the high non-operating income raises concerns about its sustainability.

Transwarranty Finance, a microcap non-banking financial company (NBFC), has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Transwarranty Finance has shown positive performance in the second quarter of the fiscal year 2024-2025. The company’s score has improved from 15 to 9 in the last three months.


One of the key highlights of the financial report is the significant growth in Profit After Tax (PAT) for the nine-month period, which has increased by 137.12% compared to the same period last year. This shows a positive trend in the company’s profitability.


The company’s net sales for the first half of the fiscal year have also shown a growth of 32.66% compared to the previous year. This indicates a positive trend in the company’s sales performance in the near term.


Another noteworthy point is that the company’s PAT for the nine-month period is higher at Rs 2.81 crore compared to the preceding 12-month period, which was at Rs -7.93 crore. This shows that the company has already surpassed its sales from the previous year in just nine months.


However, the financial report also highlights some areas that are not working in favor of Transwarranty Finance. The company’s non-operating income for the quarter is 276.60% of its Profit Before Tax (PBT). This indicates that the company’s income from non-business activities is high, which may not be a sustainable business model.


Moreover, the non-operating income for the quarter is the highest in the last five quarters, which raises concerns about the sustainability of this income source.


Overall, Transwarranty Finance has shown positive financial performance in the second quarter of the fiscal year 2024-2025. However, investors should carefully consider the company’s non-operating income and its sustainability before making any investment decisions.


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