Universal Cables Reports Positive Growth in Financial Performance for Q2 FY25

Universal Cables, a smallcap company in the cable industry, has recently announced its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 6 compared to -7 in the previous quarter.

One of the key factors contributing to this growth is the significant increase in Profit Before Tax (PBT) by 874.15% year on year. The company’s Profit After Tax (PAT) has also shown a positive growth of 56.9% year on year. Additionally, Universal Cables has recorded its highest Net Sales in the last five quarters, with a growth of 29.07% year on year.

The company has also been distributing a higher proportion of its profits as dividends, with a Dividend Payout Ratio (DPR) of 9.62% in the last five years. However, one area of concern is the high Non Operating Income, which accounts for 37.95% of the company’s PBT. This indicates that the company’s income from non-business activities is high, which may not be a sustainable business model.

MarketsMOJO has given a ‘Hold’ call for Universal Cables’ stock, based on its financial performance. With a positive trend in PBT, PAT, and Net Sales, the company is showing promising growth in the near term. Investors may want to keep an eye on the company’s Non Operating Income and its impact on the overall business model.