Vascon Engineers' Q3 Financial Results Show Negative Performance and Rising Debt

Vascon Engineers, a smallcap company in the capital goods industry, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a very negative performance in this quarter, with a score of -26 compared to -18 in the previous quarter.

The company's profit before tax (PBT) has fallen by 61.9% to Rs 5.20 crore, which is significantly lower than the average PBT of the previous four quarters at Rs 13.64 crore. This indicates a very negative trend in the near term. Similarly, the net sales for the quarter have also fallen by 17.7% to Rs 199.80 crore, compared to the average net sales of the previous four quarters at Rs 242.78 crore.

One of the major concerns for Vascon Engineers is the rising interest cost, which has increased by 25.24% quarter on quarter. This signifies increased borrowings by the company. The profit after tax (PAT) for the quarter is also at its lowest at Rs 8.36 crore and has been falling for the past five quarters, indicating a negative trend in the near term.

The company's operating cash flow has also been on a decline, with the lowest at Rs -28.51 crore in the last three years. This shows that the company's cash revenues from business operations are also falling. Additionally, the debt-equity ratio for the last five half yearly periods has been at its highest at 0.23 times, indicating that the company is borrowing more to fund its operations and its liquidity situation may be stressed.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Vascon Engineers' stock. Investors should carefully consider these factors before making any investment decisions.