TBO Tek's Q2 financials show growth, but rising debt could impact profitability

This could lead to higher debt burden and impact profitability in the long run.
TBO Tek, a midcap company in the travel services industry, has recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for TBO Tek is 'Hold'.

According to the financials, TBO Tek has seen a flat performance in the second quarter of the fiscal year 2024-25, with a score of 2 compared to 7 in the previous quarter. However, there are some positive aspects to the company's financials.

The Profit After Tax (PAT) for the nine-month period has shown a growth of 22.52% year on year, reaching Rs 167.64 crore. The net sales for the quarter have also shown a positive trend, with the highest sales of Rs 450.69 crore in the last five quarters. The operating profit (PBDIT) and profit before tax (PBT) have also shown positive trends, with the highest figures in the last five quarters.

However, there are some concerns regarding the company's financials. The interest cost for the half-yearly period has increased by 74.86%, which could indicate increased borrowings and a potential impact on profitability in the long run.

Overall, TBO Tek's financial results for the quarter ending September 2024 have shown a mixed performance. Investors are advised to hold their positions in the stock, as recommended by MarketsMOJO.