Wheels India reports positive financial performance in Q1 FY25, with room for improvement

Wheels India, a smallcap company in the auto ancillary industry, has recently declared its financial results for the quarter ending June 2024. According to the latest report, the company has shown positive financial performance with a score of 19, which is a slight decrease from the previous quarter’s score of 24.

One of the major highlights of the financial results is the significant growth in Profit Before Tax (PBT) and Profit After Tax (PAT). The PBT for the quarter was Rs 29.49 crore, which is a growth of 82.9% compared to the average PBT of the previous four quarters. Similarly, the PAT for the quarter was Rs 23.60 crore, showing a growth of 50.4% compared to the average PAT of the previous four quarters. This indicates a very positive trend in the near term for the company.

Another positive aspect of the financial results is the Debt-Equity Ratio, which is at its lowest in the last five half-yearly periods. The company has been reducing its borrowing and maintaining a healthy ratio compared to its equity capital. Additionally, the Debtors Turnover Ratio has also shown improvement, with the company being able to settle its debtors faster.

However, there are some areas that need improvement for Wheels India. The Net Sales for the quarter were at its lowest in the last five quarters, and there has been a negative trend in the near term. This is also reflected in the Net Sales growth, which has fallen by -6.3% compared to the average of the previous four quarters.

Overall, Wheels India has shown positive financial performance in the quarter ending June 2024, with some areas that need attention. The stock call by MarketsMOJO for the company is ‘Hold’, and investors are advised to keep a close eye on the company’s future financial results.