Hindustan Composites ‘s Q2 Report: Profit Decreases by 6.54% YoY

The comprehensive analytics outlining the performance and outlook of Hindustan Composites Ltd‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Hindustan Composites Ltd’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 7.29 %. However, it did see a marginal slip of -0.26 % from the previous quarter. Expenses ticked up slightly by 0.68 % quarter-on-quarter, aligning with the annual rise of 10 %. Operating profit, while down -4.37 % compared to last year, faced a quarter-on-quarter dip of -4.65 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -2.04 %, but a shrinkage of -0.77 % sequentially. Other income rose by 240 % compared to the last quarter, despite an annual decline of -73.44 %. Interest expenses dropped significantly by -33.33 % from the previous quarter, yet the year-over-year decrease remains at a moderate -50 %. Depreciation costs climbed by 3.59 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 12.07 %. Profit before tax declined annually by -11.21 % but saw a reduction from the preceding quarter by -5.34 %.
Tax expenses as a percentage of profits decreased slightly by -4.43 % compared to last year, with a more notable quarter-on-quarter decrease of -10.35 %. Net profit fell by -6.54 % year-on-year but experienced a 7.15 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -6.54 % but a quarterly rise of 7.16 %. In summary, Hindustan Composites Ltd’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Hindustan Composites Ltd’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 7.29 % year-on-year growth, although there was a slight dip of -0.26 % from the previous quarter. Expenses rose by 10 % compared to the previous year, with a 0.68 % increase quarter-on-quarter. Operating Profit dropped by -4.37 % annually, and saw a -4.65 % decrease from the last quarter.
Net Profit showed yearly decrease of -6.54 %, and experienced a 7.15 % increase from the previous quarter. Earnings Per Share (EPS) fell by -6.54 % annually, however rose by 7.16 % compared to the last quarter. In essence, while Hindustan Composites Ltd faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.