Gokak Textiles Reports Mixed Performance in Q2 FY25, Investors Advised to Evaluate Carefully

Gokak Textiles, a microcap company in the textile industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

The company’s performance for the quarter has been flat, with a score of -1 compared to 3 in the previous quarter. However, there are some positive aspects to the financials. The company’s operating profit to interest ratio has been the highest at 0.76 times and has grown consistently in the last five quarters. This indicates that Gokak Textiles is improving its ability to manage interest payments.

Moreover, the company’s operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 6.06 crore. The near-term trend for operating profit is also positive. The operating profit margin for the quarter was also the highest in the last five quarters at 21.20%, indicating an improvement in the company’s efficiency.

However, there are some areas of concern for Gokak Textiles. The net sales for the quarter were Rs 28.58 crore, which is a decline of 10.32% compared to the same period last year. The near-term trend for sales is also negative. The interest cost for the nine-month period has increased by 22.19%, indicating a rise in borrowings for the company.

The profit after tax (PAT) for the quarter was Rs -7.13 crore, a decline of 5.6% compared to the same period last year. The near-term trend for PAT is also negative. Overall, Gokak Textiles has shown a mixed performance in the quarter ending September 2024. Investors should carefully evaluate the company’s financials before making any investment decisions.