Hindustan Motors Reports Positive Financial Results for Q1 FY25, Non-Operating Income a Concern.

Hindustan Motors, a microcap company in the auto industry, has recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Hindustan Motors has shown positive performance in the quarter, with a score of 14 out of 20. This is an improvement from the previous quarter’s score of 20. The company’s Profit After Tax (PAT) for the quarter has grown by 27.1% compared to the average of the previous four quarters. This indicates a positive trend in the near term.

Additionally, the company’s Cash and Cash Equivalents for the half-yearly period is at its highest in the last six periods, standing at Rs 21.65 crore. This shows an improvement in short-term liquidity for the company.

However, the company’s Non-Operating Income for the quarter is 102.85% of its Profit Before Tax (PBT). This suggests that a significant portion of the company’s income is coming from non-business activities, which may not be a sustainable business model.

Overall, Hindustan Motors has shown positive financial performance in the quarter ending March 2024. However, investors should keep an eye on the company’s non-operating income and its impact on the sustainability of its business model.