GRP Reports Positive Q1 FY25 Results, But Concerns Remain for Investors

GRP, a smallcap company in the rubber products industry, has recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, GRP has shown positive performance in the quarter, with a score of 12 compared to 24 in the previous quarter. The company’s operating cash flow has been consistently growing over the last three years, with the highest amount of Rs 27.01 crore generated annually. Additionally, the net sales for the first half of the year have shown a growth of 35.54% year on year, indicating a positive sales trend in the near term.

However, there are some areas that have not been performing well for GRP. The profit after tax for the quarter has fallen by 28.6% compared to the average of the previous four quarters. The profit before tax, less other income, has also shown a decline of 11.7% over the average of the previous four quarters. The company’s interest costs have increased by 24.26% quarter on quarter, indicating a rise in borrowings. Additionally, the company’s cash and cash equivalents have decreased to the lowest amount of Rs 0.27 crore in the last six half yearly periods, indicating a deteriorating short term liquidity. The debtors turnover ratio has also decreased to 4.66 times, showing a slower pace in settling debts.

Overall, GRP has shown positive financial performance in the quarter ending June 2024, with some areas of concern. Investors are advised to hold their stock and keep an eye on the company’s future financial results.