Menon Bearings announces Q2 results: Profit Rises by 12.23% YoY

The comprehensive analytics outlining the performance and outlook of Menon Bearings 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 Menon Bearings 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 17.1 %. However, it did see a marginal increase of 2.96 % from the previous quarter. Expenses ticked up slightly by 1.87 % quarter-on-quarter, aligning with the annual rise of 18.1 %. Operating profit, while up 13.09 % compared to last year, faced a quarter-on-quarter increase of 7.69 %, 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 -0.68 %, but an expansion of 0.85 % sequentially. Other income rose by 36.65 % compared to the last quarter, despite an annual decline of -2.04 %. Interest expenses surged remarkably by 28.41 % from the previous quarter, yet the year-over-year increase remains at a moderate 28.41 %. Depreciation costs climbed by 3.98 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 4.44 %. Profit before tax grew annually by 11.99 % but saw an increase from the preceding quarter by 8.99 %.
Tax expenses as a percentage of profits decreased slightly by -0.2 % compared to last year, with a more notable quarter-on-quarter increase of 0.19 %. Net profit rose by 12.23 % year-on-year but experienced a 8.77 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 13.21 % but a quarterly rise of 9.09 %. In summary, Menon Bearings Ltd’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Menon Bearings Ltd’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 17.1 % year-on-year growth, however, there was a minor increase of 2.96 % from the previous quarter. Expenses rose by 18.1 % compared to the previous year, with a 1.87 % increase quarter-on-quarter. Operating Profit surged by 13.09 % annually, and saw a 7.69 % increase from the last quarter.
Net Profit showed yearly increase of 12.23 %, and experienced a 8.77 % increase from the previous quarter. Earnings Per Share (EPS) rose by 13.21 % annually, however rose by 9.09 % compared to the last quarter. In essence, while Menon Bearings 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.