HP Cotton Textile Mills ‘s Q2 Results: Profit Drops by 84.46% YoY

The comprehensive analytics outlining the performance and outlook of H.P. Cotton Textile Mills 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 H.P. Cotton Textile Mills 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 50.02 %. However, it did see a marginal increase of 33.25 % from the previous quarter. Expenses ticked up slightly by 28.57 % quarter-on-quarter, aligning with the annual rise of 50.99 %. Operating profit, while up 43.26 % compared to last year, faced a quarter-on-quarter increase of 81.98 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -0.57 %, but an expansion of 3.2 % sequentially. Other income fell by -16.13 % compared to the last quarter, despite an annual decline of -55.17 %. Interest expenses surged remarkably by 15.07 % from the previous quarter, yet the year-over-year increase remains at a moderate 1.2 %. Depreciation costs climbed by 1.22 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -5.68 %. Profit before tax grew annually by 108.14 % but saw an increase from the preceding quarter by 616 %.
Tax expenses as a percentage of profits decreased slightly by -467.3 % compared to last year, with a more notable quarter-on-quarter decrease of -34.37 %. Net profit fell by -84.46 % year-on-year but experienced a 76.6 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -84.33 % but a quarterly rise of 78.33 %. In summary, H.P. Cotton Textile Mills Ltd.,’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing H.P. Cotton Textile Mills Ltd.,’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 50.02 % year-on-year growth, however, there was a minor increase of 33.25 % from the previous quarter. Expenses rose by 50.99 % compared to the previous year, with a 28.57 % increase quarter-on-quarter. Operating Profit surged by 43.26 % annually, and saw a 81.98 % increase from the last quarter.
Net Profit showed yearly decrease of -84.46 %, and experienced a 76.6 % increase from the previous quarter. Earnings Per Share (EPS) fell by -84.33 % annually, however rose by 78.33 % compared to the last quarter. In essence, while H.P. Cotton Textile Mills Ltd., exhibits strong annual growth 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.