Intl. Combustion's Q1 FY25 Financial Report Shows Decline in Profitability and Efficiency

International Combustion (India), a microcap engineering company, has recently announced its financial results for the quarter ended June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Intl. Combustion has seen a negative performance in the quarter, with a score of -14 compared to 15 in the previous 3 months. This decline can be attributed to several factors.

One of the major concerns is the company’s Profit Before Tax less Other Income (PBT), which has fallen by 80.37% year on year to Rs 1.78 crore. The Profit After Tax (PAT) has also seen a significant decline of 69.1% year on year to Rs 1.77 crore. This indicates a negative trend in the company’s near-term profitability.

The company’s Net Sales have also decreased by 13.47% year on year to Rs 59.53 crore, making it the lowest in the last five quarters. This shows a negative trend in the company’s sales performance. The Operating Profit (PBDIT) has also hit a low of Rs 4.84 crore, indicating a negative trend in the company’s near-term operating profit.

Moreover, the company’s Operating Profit Margin has also decreased to 8.13%, the lowest in the last five quarters. This suggests a decline in the company’s efficiency. The Earnings per Share (EPS) have also decreased to Rs 7.41, the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

In addition, the Debtors Turnover Ratio has also hit a low of 4.41 times in the last five half-yearly periods, indicating a slowdown in the company’s pace of settling its debtors.

Overall, Intl. Combustion’s financial performance for the quarter ended June 2024 has been negative, with declining profitability and efficiency. Investors are advised to take note of these factors before making any investment decisions.