JK Lakshmi Cement's Q2 FY24-25 results show mixed performance, investors advised caution

JK Lakshmi Cement, a midcap company in the cement industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for JK Lakshmi Cement is 'Sell'.

The company has seen a very negative financial performance in the second quarter of FY24-25, with a score of -25 compared to -11 in the previous quarter. However, there are some positive aspects to the company's financials based on the September 2024 results.

JK Lakshmi Cement has shown a strong operating cash flow of Rs 899.17 crore annually in the last three years, indicating higher cash revenues from business operations. The company also has a high dividend payout ratio of 16.21% annually in the last five years, showing its commitment to distributing profits to shareholders.

On the other hand, there are some concerning factors in the company's financials based on the September 2024 results. The net sales for the quarter have fallen by -25.4% compared to the average net sales of the previous four quarters. The profit before tax less other income (PBT) has also seen a significant decline of -122.7% over the average PBT of the previous four quarters. The profit after tax (PAT) has also fallen by -112.2% over the average PAT of the previous four quarters.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters. The interest cost has also increased, indicating higher borrowings. The net sales and operating profit (PBDIT) for the quarter are also at their lowest in the last five quarters, and the operating profit margin has also declined.

The earnings per share (EPS) for the quarter are at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders. The company's short-term liquidity is also deteriorating, with the cash and cash equivalents at its lowest in the last six half-yearly periods. The debtors turnover ratio has also slowed down, indicating a slower pace of settling debts.

Overall, the financial results for the quarter ending September 2024 for JK Lakshmi Cement show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.