Dalmia Bharat Sugar & Industries Reports Mixed Financial Results for Q2 2024

Dalmia Bharat Sugar & Industries, a smallcap company in the sugar industry, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

The company has seen a negative financial performance in the second quarter of the fiscal year 2024-25, with a score of -6, which has improved from -11 in the last three months. However, there are some positive aspects in the company's financials.

One of the strengths of Dalmia Bharat is its high Dividend Payout Ratio (DPR) of 14.90%, which has been consistently growing over the last five years. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders.

The company's Net Sales for the quarter were at Rs 926.39 crore, showing a growth of 22.5% compared to the average Net Sales of the previous four quarters. This indicates a positive trend in the company's sales performance in the near term.

On the other hand, there are some areas of concern in the company's financials. The Profit Before Tax less Other Income (PBT) for the quarter was at Rs 21.91 crore, which is a significant decrease of -59.5% compared to the average PBT of the previous four quarters. This shows a very negative trend in the company's PBT in the near term.

The company's interest cost has also increased by 57.76% in the previous half-year period, indicating a rise in borrowings. Additionally, the company's Operating Cash Flow for the last three years has been consistently falling, with the lowest being at Rs -354.71 crore. This shows a decline in the company's cash revenues from business operations.

Moreover, the company's Non-Operating Income for the quarter was at 42.17% of the PBT, which is a high percentage. This indicates that the company's income from non-business activities is significant, which may not be a sustainable business model.

In conclusion, Dalmia Bharat Sugar & Industries has shown a mixed financial performance in the quarter ending September 2024. While there are some positive aspects, there are also some areas of concern that investors should keep in mind while making their investment decisions.