Fedders Holding Reports Negative Performance in Q2 FY25 Financial Results

Fedders Holding, a smallcap finance and non-banking financial company, 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, Fedders Holding has seen a negative performance in the quarter, with a score of -17 compared to 18 in the previous 3 months. This decline can be attributed to various factors, as highlighted by the financial data.

One of the major concerns for the company is the decrease in net sales, which have fallen by 42.6% to Rs 85.11 crore compared to the average net sales of the previous four quarters at Rs 148.26 crore. This trend is expected to continue in the near term.

The company’s profit before tax (PBT) less other income has also seen a significant decline of 134.4% to Rs -5.51 crore compared to the average PBT of the previous four quarters at Rs 16.01 crore. Similarly, the profit after tax (PAT) has fallen by 74.4% to Rs 6.94 crore compared to the average PAT of the previous four quarters at Rs 27.06 crore.

In addition, the company’s operating cash flow has been at its lowest in the last three years at Rs -109.35 crore, indicating a decline in cash revenues from business operations.

The trend of declining sales and profits is also reflected in the company’s net sales and operating profit (PBDIT) for the quarter, which have been at their lowest in the last five quarters. The operating profit margin has also decreased to -3.43%, indicating a deterioration in the company’s efficiency.

Moreover, the non-operating income for the quarter is 172.31% of the PBT, which suggests that the company’s income from non-business activities is high and not sustainable in the long run.

Overall, the financial results for the quarter ending September 2024 show a negative performance for Fedders Holding. Investors are advised to take note of these factors before making any investment decisions.