The Investment Trust of India Reports Strong Q2 Results Despite 'Sell' Call from MarketsMOJO

The Investment Trust of India, a smallcap finance company, has recently declared its financial results for the quarter ending September 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis platform.

Despite this, The Investment Trust of India has shown very positive financial performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 8 to 20 in the last three months, indicating a strong growth trend.

One of the key factors contributing to this growth is the company's Profit Before Tax less Other Income (PBT) which has grown by 97.8% to Rs 17.74 crore in the quarter, compared to the average PBT of the previous four quarters which was Rs 8.97 crore. The Profit After Tax (PAT) has also shown a significant growth of 152.9% to Rs 20.38 crore in the quarter, compared to the average PAT of the previous four quarters which was Rs 8.06 crore. This indicates a very positive trend in the company's near term profitability.

The company's Net Sales have also seen a strong growth of 47.9% to Rs 111.19 crore in the quarter, compared to the average Net Sales of the previous four quarters which was Rs 75.16 crore. This is the highest net sales in the last five quarters, indicating a positive trend in the company's sales performance.

The Operating Profit (PBDIT) has also shown a positive trend, reaching its highest at Rs 23.61 crore in the last five quarters. The company's Earnings per Share (EPS) have also increased to its highest at Rs 3.90 in the last five quarters, indicating a higher profitability for shareholders.

However, there are some areas that need improvement for The Investment Trust of India. The company's Operating Cash Flow has been consistently falling in the last three years, reaching its lowest at Rs -209.46 crore annually. This indicates a decline in the company's cash revenues from business operations. The company's Short Term liquidity has also deteriorated, with its Cash and Cash Equivalents reaching its lowest at Rs 236.21 crore in the last six half yearly periods. Additionally, the company's Non Operating Income has increased to its highest at Rs 7.29 crore in the last five quarters, which may not be sustainable in the long run.

Overall, The Investment Trust of India has shown a strong financial performance in the second quarter of the fiscal year 2024-2025, with positive trends in key areas such as PBT, PAT, and Net Sales. However, the company needs to address its declining cash flow and liquidity in order to sustain its growth in the long run.