Hind Aluminium's Q3 financial results show decline

Hind Aluminium Industries, a microcap company in the aluminium industry, recently declared its financial results for the quarter ended September 2023. According to the analysis by MarketsMOJO, the stock call for Hind Aluminium is 'Sell'.

In the quarter ended September 2023, Hind Aluminium saw a 26.32% growth in net sales compared to the previous quarter. However, the consolidated net profit saw a decline of -31.91%. The operating profit (PBDIT) excluding other income also saw a significant decline of -2,868.18%. The interest growth remained stagnant at 0.00%.

The operating profit margin (excluding other income) also saw a decline from the previous quarter. Overall, the financial performance of Hind Aluminium in the quarter ended September 2023 was negative, with a score of -6 compared to 10 in the previous quarter.

Despite the negative performance, there are some positive aspects to note. The profit after tax (PAT) for the quarter was Rs 3.84 crore, showing a growth of 88.9% compared to the average PAT of the previous four quarters. However, the profit before tax (PBT) less other income saw a decline of -679.4% compared to the average PBT of the previous four quarters.

On the other hand, there are some areas of concern for Hind Aluminium. The operating cash flow has been falling each year in the last three years, with the lowest being Rs -0.10 crore in the last year. The inventory turnover ratio has also been consistently falling in the last five half yearly periods, indicating a slowdown in the pace of selling inventory.

The company's operating profit and PBT have also been consistently low in the last five quarters. The cash and cash equivalents have also been declining in the last six half yearly periods, indicating a deteriorating short-term liquidity. The debtors turnover ratio has also been consistently low, showing a slowdown in the pace of settling debtors.

Moreover, the dividend payout ratio has been consistently low in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends. The non-operating income for the quarter was the highest in the last five quarters, but it may not be sustainable in the long run.

Overall, the financial results for the quarter ended September 2023 for Hind Aluminium Industries have been negative, with some areas of concern and some positive aspects. Investors should carefully analyze the company's financial performance before making any investment decisions.