Hisar Metal Industries' Q2 financial results show mixed performance, with areas of concern

Hisar Metal Industries, a microcap company in the steel/sponge iron/pig iron industry, recently announced its financial results for the quarter ending September 2024. The results have been declared on November 7, 2024.

According to MarketsMOJO, a leading stock analysis platform, the stock call for Hisar Metal Industries is currently 'Strong Sell'. This is based on the negative financial performance of the company in the second quarter of the fiscal year 2024-25. However, there has been a slight improvement in the company's score from -14 to -12 in the last three months.

Looking at the company's financials for the quarter, there are some positive and negative aspects. On the positive side, the debt-equity ratio for the half-yearly period is at its lowest in the last five periods, standing at 1.10 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas of concern as well. The profit before tax (PBT) less other income has fallen by 49.81% year on year, standing at Rs 1.30 crore. The near-term trend for PBT is also negative. Similarly, the profit after tax (PAT) for the half-yearly period has grown at a negative rate of 48.97% year on year, standing at Rs 1.98 crore. The near-term trend for PAT is also negative.

Another worrying aspect is the interest cost, which has grown by 31.63% over the preceding nine months period, standing at Rs 5.66 crore. This signifies an increase in borrowings for the company. Additionally, the debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, standing at 4.23 times. This indicates that the company's pace of settling its debtors has slowed down.

In conclusion, the financial results for the quarter ending September 2024 for Hisar Metal Industries show a mixed performance. While there are some positive aspects, there are also some areas of concern that the company needs to address in order to improve its financial performance.