Chembond Chemicals Reports Mixed Performance in Q2 FY25 Financial Results

Chembond Chemicals, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Chembond Chem. has shown a flat performance in the quarter, with a score of 0 compared to -6 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow for the year has been the highest at Rs 27.65 crore and has shown growth in the last three years. Additionally, the net sales for the quarter were the highest in the last five quarters at Rs 123.53 crore, indicating a positive trend in sales.

On the other hand, there are some areas of concern for Chembond Chem. The profit after tax (PAT) for the nine-month period has shown a decline of 20.59% year on year, and the near-term trend for PAT is negative. Furthermore, the non-operating income for the quarter is 33.77% of the profit before tax, indicating a high reliance on non-business activities for income, which may not be sustainable in the long run. The company’s dividend payout ratio is also at its lowest in the last five years, indicating a lower distribution of profits as dividends.

Overall, Chembond Chemicals has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to the financials, there are also some areas of concern that need to be addressed. Investors are advised to hold their position in the company’s stock and keep a close eye on its future performance.