Hi-Tech Gears Reports Mixed Q2 Results: Standalone Profit Amidst Consolidated Loss
Hi-Tech Gears announced Q2 financial results showing mixed performance. Standalone revenue increased marginally by 0.60% to ₹1,740.92 million, but profit after tax declined 34.48% to ₹79.81 million. Consolidated results faced more challenges with revenue declining 2.30% to ₹2,407.38 million and profit after tax decreasing 36.97% to ₹60.14 million. India remained the primary revenue generator at ₹1,764.42 million, followed by Canada at ₹632.20 million. Half-year standalone revenue reached ₹3,332.14 million with ₹173.73 million profit after tax, while consolidated revenue stood at ₹4,562.85 million with ₹120.12 million profit after tax.
*this image is generated using AI for illustrative purposes only.
Hi-Tech Gears , a prominent player in the gears and transmissions manufacturing sector, has announced its financial results for the second quarter, revealing a mixed performance across its standalone and consolidated operations.
Standalone Performance
On a standalone basis, Hi-Tech Gears demonstrated resilience in its core Indian operations:
| Metric | Q2 (₹ in million) | Q2 (₹ in million) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 1,740.92 | 1,730.50 | +0.60% |
| Total Income | 1,765.53 | 1,747.52 | +1.03% |
| Profit Before Tax | 114.92 | 158.57 | -27.53% |
| Profit After Tax | 79.81 | 121.81 | -34.48% |
The company's standalone revenue from operations saw a marginal increase of 0.60% year-over-year, reaching ₹1,740.92 million. However, profitability faced headwinds, with profit after tax declining by 34.48% to ₹79.81 million compared to the same quarter last year.
Consolidated Results
The consolidated financial picture presented more challenges:
| Metric | Q2 (₹ in million) | Q2 (₹ in million) | YoY Change |
|---|---|---|---|
| Revenue from Operations | 2,407.38 | 2,463.95 | -2.30% |
| Total Income | 2,431.11 | 2,483.03 | -2.09% |
| Profit Before Tax | 95.95 | 154.44 | -37.87% |
| Profit After Tax | 60.14 | 95.42 | -36.97% |
On a consolidated basis, Hi-Tech Gears experienced a 2.30% decline in revenue from operations, amounting to ₹2,407.38 million. The consolidated profit after tax decreased by 36.97% to ₹60.14 million.
Segment Performance
The company's operations are segmented geographically:
- India: Remained the primary revenue generator with ₹1,764.42 million.
- Canada: Contributed ₹632.20 million to the consolidated revenue.
- Others: Generated ₹69.20 million in revenue.
Half-Year Performance
For the half-year:
- Standalone revenue reached ₹3,332.14 million with a profit after tax of ₹173.73 million.
- Consolidated revenue stood at ₹4,562.85 million, with a profit after tax of ₹120.12 million.
Looking Ahead
As Hi-Tech Gears moves forward, the focus may likely be on strengthening its core Indian operations while addressing the challenges in its international segments. The company's ability to manage costs and improve operational efficiencies across all geographies will be crucial in the coming quarters.
Investors and stakeholders will be watching closely to see how Hi-Tech Gears adapts its strategies to improve its consolidated performance and return to stronger profitability across all its business segments.
Note: All financial figures are in Indian Rupees (₹) and are based on the unaudited financial results as reported by Hi-Tech Gears Limited.
Historical Stock Returns for Hi-Tech Gears
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| -1.82% | -5.41% | -11.41% | +4.24% | -22.28% | +325.63% |
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