BGR Energy Systems Reports Significant Decline in Q2 Performance

BGR Energy Systems, a microcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, BGR Energy Systems has seen a significant decline in its performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -5 to -26 in the last three months, indicating a very negative trend.

The net sales for the quarter were at Rs 82.54 crore, which is a decrease of 59.5% compared to the average net sales of the previous four quarters. This shows a very negative trend in the company's near-term sales. Similarly, the profit before tax (PBT) has also fallen by 113% to Rs -193.35 crore, compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a significant decline of 282% to Rs -187.89 crore.

The company's operating cash flow has been falling each year for the past three years, with the latest figure at Rs 150.38 crore. This indicates a decrease in cash revenues from business operations. Additionally, the company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The interest cost has also increased by 21.36% in the preceding nine months, indicating a rise in borrowings. The company's sales and operating profit have also been at their lowest in the last five quarters, with a negative trend in both. The operating profit margin has also decreased to -83.35%, showing a decline in the company's efficiency.

The earnings per share (EPS) for the quarter were at its lowest in the last five quarters, at Rs -26.68. This indicates a decline in profitability and lower earnings for shareholders. The company's short-term liquidity has also deteriorated, with cash and cash equivalents at its lowest in the last six half-yearly periods.

Moreover, the debtors turnover ratio has also decreased to 0.99 times in the last five half-yearly periods, indicating a slower pace in settling debts. Overall, the financial results for the quarter ending September 2024 have not been favorable for BGR Energy Systems, with various negative trends in its performance.