Goa Carbon's Q2 FY24-25 Financial Results Show Negative Trends, Investors Beware

Goa Carbon, a microcap company in the carbon black industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, the stock call for Goa Carbon is 'Strong Sell'.

The company's financial performance for Q2 FY24-25 has been very negative, with a score of -30 compared to -25 in the previous quarter. However, there are some positive aspects to the company's financials based on the September 2024 results.

Goa Carbon has shown a strong operating cash flow of Rs 196.08 crore annually in the last three years, indicating higher cash revenues from business operations. Additionally, the company has distributed a higher dividend per share (DPS) of Rs 20.00 in the last five years, indicating profitability and the ability to distribute profits to shareholders.

On the other hand, there are some concerning factors in the company's financials based on the September 2024 results. The net sales for the quarter have fallen by -40.7% compared to the average net sales of the previous four quarters, indicating a negative sales trend in the near term. The profit before tax less other income (PBT) has also fallen by -179.0% compared to the average PBT of the previous four quarters, indicating a negative trend in the near term. The same trend can be seen in the profit after tax (PAT) and operating profit margin, which have both fallen in the last five quarters.

Furthermore, 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 operating profit and PBT have also reached their lowest levels in the last five quarters, indicating a negative trend in the near term. The earnings per share (EPS) have also declined, showing lower profitability and earnings for shareholders.

In conclusion, based on the September 2024 financial results, Goa Carbon's financial performance has been very negative. Investors should carefully consider these factors before making any investment decisions.