Greenlam Industries Reports Mixed Financial Performance in Q2 2024-25

Greenlam Industries, a midcap company in the miscellaneous industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' 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 -10, which has improved from -16 in the last three months. However, there are some positive aspects to the company's financials.

Greenlam Industries has shown a strong operating cash flow, with the highest annual amount of Rs 193.64 crore and a consistent growth over the past three years. The company has also recorded its highest quarterly net sales of Rs 680.81 crore in the last five quarters, indicating a positive trend in sales.

On the other hand, there are some areas of concern for Greenlam Industries. The profit before tax (PBT) less other income has fallen by -16.58% year on year, with a quarterly amount of Rs 39.09 crore. The profit after tax (PAT) has also decreased by -11.3% year on year, with a quarterly amount of Rs 34.62 crore. The company's debt-equity ratio is at its highest at 1.11 times and has been increasing over the past five half-yearly periods, indicating a higher reliance on borrowing. The interest cost has also increased by 12.62% quarter on quarter, suggesting a rise in borrowings. Additionally, the debtors turnover ratio is at its lowest in the last five half-yearly periods, indicating a slower pace in settling debts.

Overall, Greenlam Industries has shown a mixed financial performance in the second quarter of the fiscal year 2024-25. Investors should carefully consider these factors before making any investment decisions.