KCP's Q1 financials show growth in PAT and cash reserves, but concerns remain

KCP, a smallcap cement company, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for KCP is 'Hold'.

The company's financial performance for the quarter has remained flat, with a score of 5 compared to 27 in the previous 3 months. However, there are some positive aspects to the financials.

KCP's Profit After Tax (PAT) for the half-yearly period has shown a growth of 42.95% year on year, reaching Rs 89.04 crore. The company's cash and cash equivalents have also increased to Rs 915.66 crore, the highest in the last six half-yearly periods, indicating an improvement in short-term liquidity. Additionally, KCP has been reducing its debt compared to equity capital, with the Debt-Equity Ratio at its lowest in the last five half-yearly periods.

On the other hand, there are some areas of concern in KCP's financials. The company's interest cost has increased by 38.35% quarter on quarter, indicating a rise in borrowings. The operating cash flow for the year has also decreased to Rs 69.82 crore, the lowest in the last three years. Furthermore, the net sales for the quarter have shown a negative growth of 7.14% year on year, and the operating profit for the quarter is at its lowest in the last five quarters.

Overall, KCP's financial results for the quarter ending June 2024 have been mixed, with some positive and negative aspects. Investors are advised to hold their position in the stock, as per MarketsMOJO's recommendation.