Triveni Engineering and Industries Reports Negative Q2 Results, Hold Stock: MarketsMOJO

Triveni Engineering and Industries, a midcap company in the sugar industry, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for Triveni Engineering and Industries is 'Hold'.

According to the financial report, Triveni Engineering and Industries has seen a very negative performance in the second quarter of the fiscal year 2024-2025, with a score of -22, a decrease from -19 in the last three months.

However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters at Rs 1,490.95 crore, indicating a positive trend in sales. The company has also shown a high dividend payout ratio of 31.85% annually in the last five years, indicating that it is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern in Triveni Engineering and Industries' financials. The profit before tax (PBT) less other income for the quarter was at Rs -43.94 crore, a decrease of -141.9% from the average PBT of the previous four quarters. This indicates a very negative trend in the near term. Similarly, the profit after tax (PAT) for the quarter was at Rs -19.20 crore, a decrease of -121.4% from the average PAT of the previous four quarters, also showing a very negative trend in the near term.

The company's interest costs have also increased, with a growth of 74.80% over the previous half-yearly period. This signifies increased borrowings by the company. The operating profit to interest ratio for the quarter was at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin for the quarter was also at its lowest in the last five quarters, showing a decline in the company's efficiency.

In conclusion, Triveni Engineering and Industries has shown a very negative financial performance in the second quarter of the fiscal year 2024-2025. While there are some positive aspects to the company's financials, there are also areas of concern that need to be addressed. Investors are advised to hold their stock in Triveni Engineering and Industries for now, as recommended by MarketsMOJO.