Andhra Cements' Financial Performance Declines in Q2 FY25, Receives 'Strong Sell' Rating

Andhra Cements, a microcap company in the cement industry, recently announced its financial results for the quarter ending September 2024. The company’s performance has been deemed negative, with a score of -14 compared to 7 in the previous quarter.

One of the major concerns for Andhra Cements is its ability to manage interest payments, as seen in the lowest operating profit to interest ratio of -0.57 times, which has been falling each quarter in the last five quarters. This indicates a deteriorating financial situation for the company.

The profit before tax less other income (PBT) for the quarter has also fallen by 91.44% year on year, standing at Rs -46.08 crore. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) has also seen a decline of 121.2% year on year, with a negative near term trend.

The company’s operating cash flow has also been on a downward trend, with the lowest figure of Rs -26.72 crore in the last three years. This indicates a decrease in cash revenues from business operations.

In terms of sales, Andhra Cements has seen a decline of 15.79% year on year, with net sales of Rs 54.86 crore in the quarter. The operating profit (PBDIT) has also been on a downward trend, with the lowest figure of Rs -10.26 crore in the last five quarters.

The company’s operating profit margin has also been at its lowest in the last five quarters, standing at -18.70%. This indicates a decrease in efficiency for Andhra Cements.

Overall, the company’s financial performance for the quarter ending September 2024 has been negative, with a decline in sales, profitability, and cash flow. This has led to a stock call of ‘Strong Sell’ by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions.