Steel Exchange India Faces Financial Challenges Amid Shift to Mildly Bullish Outlook
Steel Exchange India has recently adjusted its evaluation score due to changes in technical trends. The company reported flat financial performance for Q1 FY25-26, with a notable decline in profit metrics and a high debt to EBITDA ratio, indicating challenges in servicing debt and reliance on non-operating income.
Steel Exchange India has recently undergone an evaluation adjustment, reflecting a revision in its score. This change is attributed to a shift in technical trends, moving from a mildly bearish stance to a mildly bullish outlook. In terms of key financial metrics, the company has reported a flat financial performance for the quarter ending Q1 FY25-26. The latest six-month profit after tax (PAT) stands at Rs 14.99 crore, showing a decline of 32.87%. Additionally, the profit before tax (PBT) less other income for the quarter is recorded at Rs 5.28 crore, which has decreased by 17.7% compared to the previous four-quarter average. Notably, non-operating income constitutes 48.39% of the PBT, indicating a reliance on income sources outside of core operations.
The company has also faced challenges with a high debt to EBITDA ratio of 3.47 times, suggesting limited capacity to service its debt. Furthermore, 99.95% of promoter shares are pledged, which may exert additional pressure on stock performance in a declining market.
Overall, Steel Exchange India continues to navigate a complex landscape within the iron and steel products industry.
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