Balrampur Chini Mills' Q2 FY24-25 financials show mixed results, with declining profits and cash flow

Balrampur Chini Mills, a midcap company in the sugar industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Balrampur Chini is 'Sell'.

The company has seen a very negative financial performance in the second quarter of FY24-25, with its score falling from -15 to -26 in the last three months. However, there are some positive aspects in the company's financials based on the September 2024 results.

One of the strengths of Balrampur Chini is its debt-equity ratio, which is the lowest at 0.17 times in the last five half yearly periods. This indicates that the company has been reducing its borrowing as compared to its equity capital. Additionally, the company has also shown improvement in its debtors turnover ratio, which is the highest at 171.74 times in the last five half yearly periods. This means that the company has been able to settle its debtors faster.

On the other hand, there are some areas of concern in Balrampur Chini's financials based on the September 2024 results. The company's profit before tax less other income (PBT) has fallen by -105.06% year on year, with a near term trend that is very negative. Similarly, the company's profit after tax (PAT) has also fallen by -59.6% year on year, with a negative near term trend. The company's interest cost has also increased, indicating a rise in borrowings. Moreover, the company's operating cash flow has been falling each year in the last three years, with the lowest at Rs 177.83 crore. This shows that the company's cash revenues from business operations are declining.

Furthermore, Balrampur Chini's net sales have fallen by -15.69% year on year, with a very negative near term trend. The company's operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The company's operating profit (PBDIT) is also at its lowest in the last five quarters, with a negative near term trend. The operating profit margin is also at its lowest in the last five quarters, showing a decline in the company's efficiency. Additionally, the non-operating income is 109.70% of the company's PBT, which is not a sustainable business model. Lastly, the company's earnings per share (EPS) have also declined, creating lower earnings for shareholders.

Overall, Balrampur Chini's financial performance for the quarter ending September 2024 has been very negative, with some strengths and weaknesses in its financials. Investors should carefully consider these factors before making any investment decisions.