Nikhil Adhesives ‘s Q2 Report: Revenue Rises by 2.7% YoY

The comprehensive analytics outlining the performance and outlook of Nikhil Adhesives 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 Nikhil Adhesives 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 2.7 %. However, it did see a marginal slip of -8.36 % from the previous quarter. Expenses decreased slightly by -8.77 % quarter-on-quarter, aligning with the annual rise of 1.49 %. Operating profit, while up 24.54 % compared to last year, faced a quarter-on-quarter dip of -1.98 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 1.12 %, but an expansion of 0.42 % sequentially. Other income rose by 0 % compared to the last quarter, despite an annual growth of 78.26 %. Interest expenses surged remarkably by 7.89 % from the previous quarter, yet the year-over-year increase remains at a moderate 28.13 %. Depreciation costs climbed by 1.79 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 14.77 %. Profit before tax grew annually by 27.21 % but saw a reduction from the preceding quarter by -6.05 %.
Tax expenses as a percentage of profits decreased slightly by -3.23 % compared to last year, with a more notable quarter-on-quarter decrease of -5.22 %. Net profit rose by 32.66 % year-on-year but experienced a 0.88 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 33.33 % but a quarterly rise of 1.01 %. In summary, Nikhil Adhesives Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Nikhil Adhesives Ltd.’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 2.7 % year-on-year growth, although there was a slight dip of -8.36 % from the previous quarter. Expenses rose by 1.49 % compared to the previous year, with a decrease of -8.77 % quarter-on-quarter. Operating Profit surged by 24.54 % annually, and saw a -1.98 % decrease from the last quarter.
Net Profit showed yearly increase of 32.66 %, and experienced a 0.88 % increase from the previous quarter. Earnings Per Share (EPS) rose by 33.33 % annually, however rose by 1.01 % compared to the last quarter. In essence, while Nikhil Adhesives 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.