HMT's Q1 FY25 Financial Results Show Negative Trends in Sales and Profitability

HMT, a smallcap company in the auto-tractor industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for HMT is ‘Sell’.

The company has seen a negative financial performance in the quarter, with its score falling from -5 to -16 in the last three months. This is a cause for concern for investors and stakeholders.

One of the major factors contributing to this decline is the decrease in net sales. In the last quarter, HMT’s net sales were at Rs 31.75 crore, which is a significant drop of -22.3% compared to the average net sales of the previous four quarters, which stood at Rs 40.85 crore. This indicates a negative trend in the company’s sales in the near term.

Another concerning aspect is the company’s profit after tax (PAT) for the half-yearly period, which stands at Rs -68.53 crore. This is a decline of -47.49% year on year (YoY), indicating a negative trend in the company’s profitability in the near term.

Furthermore, HMT’s debt-equity ratio is at its highest at -0.59 times and has grown each half year in the last five periods. This suggests that the company is relying more on borrowing to fund its operations, which could lead to a stressed liquidity situation.

In the last five quarters, HMT’s net sales have been at its lowest at Rs 31.75 crore. This further reinforces the negative trend in the company’s sales in the near term.

Overall, HMT’s financial performance for the quarter ending June 2024 has been disappointing, with negative trends in net sales, PAT, and debt-equity ratio. Investors and stakeholders should closely monitor the company’s future financial results to make informed decisions.