Freedom Holding Corp. Reports Strong Financial Results for Q1 2024
Freedom Holding Corp., a leading investment bank and broker, has recently announced its financial results for the quarter ending March 2024. The company has shown a positive performance with a significant growth in net sales and net profit.
According to the financial report, Freedom Holding Corp. has recorded a net sales of USD 450.74 million, which is an 80.89% increase compared to the same period last year. This shows a strong and consistent growth trend in the company's sales. In fact, the company has achieved its highest net sales in the last five periods, indicating a positive near-term sales trend.
The net profit of Freedom Holding Corp. has also seen a significant growth of 81.54% year on year, reaching USD 95.22 million. This shows a positive trend in the company's profitability, which is expected to continue in the near future.
However, there are some areas that need improvement for Freedom Holding Corp. The company's interest expenses have increased by 108.33% over the previous semi-annual period, indicating a rise in borrowings. The operating cash flow has also been on a decline in the last three years, with the lowest recorded at USD -16.14 million. This suggests that the company's cash revenues from business operations are falling.
The interest coverage ratio, which measures a company's ability to manage interest payments, has also been on a decline, reaching its lowest at 156.44 in the last five periods. Additionally, the debtors turnover ratio, which measures the pace of selling debtors, has also slowed down in the last five semi-annual periods.
Moreover, the cost of raw materials has increased by 9.17% year on year, which may affect the company's profit margin if it is unable to pass on the cost to customers.
Despite these challenges, Freedom Holding Corp. remains a strong player in the investment banking and brokerage industry. Infinhub has given a 'Buy' call for the company's stock, indicating a positive outlook for its future performance. With its strong financial results and positive near-term sales trend, Freedom Holding Corp. is well-positioned to continue its growth in the market.