Chemplast Sanmar's Q2 financial results show significant decline in profitability and liquidity.

Chemplast Sanmar, a midcap chemical company, has recently declared its financial results for the quarter ending September 2024. The company has received a 'Strong Sell' call from MarketsMOJO, indicating a negative outlook for its stock.

According to the financial report, Chemplast Sanmar has seen a decline in its financial performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -4 to -13 in the last three months, indicating a significant decrease in its profitability.

The Profit Before Tax (PBT) for the quarter stands at Rs -76.29 crore, which is a 75.2% decrease from the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the Profit After Tax (PAT) for the quarter has fallen by 77.2% from the average PAT of the previous four quarters.

The company's operating cash flow has also been on a downward trend, with a decrease in each of the last three years. Additionally, the interest cost has increased by 28.42% in the preceding nine months, indicating a rise in borrowings.

Furthermore, Chemplast Sanmar's cash and cash equivalents have reached a low of Rs 670.91 crore in the last six half-yearly periods, indicating a deterioration in short-term liquidity.

Overall, the financial results for the quarter ending September 2024 show a negative trend for Chemplast Sanmar. Investors are advised to take note of the company's declining profitability and liquidity before making any investment decisions.