Ansal Housing Reports Positive Q2 Results, Shows Strong Sales Growth and Improved Liquidity

Ansal Housing, a microcap company in the construction and real estate industry, has 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 financial report, Ansal Housing has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 17 to 7 in the last three months, indicating a positive trend.

One of the key factors contributing to this positive performance is the company's net sales, which have grown by 50.65% year on year, reaching Rs 390.97 crore in the nine-month period. This shows a strong sales trend in the near term.

Another positive aspect of Ansal Housing's financials is its operating profit to interest ratio, which is at its highest in the last five quarters at 17.60 times. This indicates the company's ability to manage its interest payments is improving.

The company's cash and cash equivalents have also seen a significant increase, reaching Rs 25.41 crore in the last six half-yearly periods. This shows an improvement in short-term liquidity.

Ansal Housing has also been able to reduce its debt-to-equity ratio, which is at its lowest in the last five half-yearly periods at 2.64 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas of concern in the financial report. The company's profit after tax (PAT) for the quarter has fallen by -374.3% compared to the average PAT of the previous four quarters. This shows a negative trend in near-term profitability.

The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters at Rs -0.97. This indicates a decline in profitability and lower earnings for shareholders.

Overall, Ansal Housing has shown positive financial performance in the quarter ending September 2024, with strong sales growth and improvements in liquidity and debt management. However, there are some concerns regarding profitability that investors should keep in mind.