Century Plyboards' Q2 Financial Report Shows Mixed Results, Receives 'Sell' Call from MarketsMOJO

Century Plyboards (India) has recently declared its financial results for the quarter ending September 2024. The company, which operates in the wood and wood products industry and is classified as a midcap company, has received a 'Sell' call from MarketsMOJO.

According to the financial report, Century Plyboards has seen a very negative performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -17 to -33 in the last three months.

However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters, standing at Rs 1,183.62 crore. The near-term sales trend is also positive.

On the other hand, there are some areas of concern for Century Plyboards. The profit before tax less other income (PBT) for the quarter has fallen by 47.29% year on year, and the profit after tax (PAT) has fallen by 58.7% year on year. The company's ability to manage interest payments is also deteriorating, with the operating profit to interest ratio being the lowest in the last five quarters.

The company's debt-equity ratio has also been increasing each half-yearly period, indicating that it is borrowing more to fund its operations. This could potentially lead to a stressed liquidity situation. Additionally, the operating cash flow has been decreasing over the last three years, and the interest cost has been rising, signifying increased borrowings.

In conclusion, while Century Plyboards has seen some positive aspects in its financials, there are also some areas of concern that investors should take note of. The company's performance in the second quarter of FY24-25 has been deemed very negative, and MarketsMOJO has given a 'Sell' call for its stock.