Oriental Hotels Reports Mixed Q2 FY24-25 Results Amid Profit Growth and Liquidity Concerns

Oriental Hotels has released its financial results for the second quarter of FY24-25, showcasing a mixed performance. The company's Profit Before Tax (PBT) for the quarter is reported at Rs 12.14 crore, marking a year-on-year growth of 29.98%. Similarly, the Profit After Tax (PAT) has also demonstrated positive growth, reaching Rs 5.71 crore, which reflects an increase of 30.7% compared to the previous year. This trend in profitability suggests a favorable near-term outlook for the company.
Despite these positive indicators, the overall financial performance has been classified as negative, with an adjustment in evaluation resulting in a score change to -6 from -13 over the past three months. Additionally, Oriental Hotels has achieved its highest Dividend Payout Ratio (DPR) in the last five years at 17.98%, highlighting a commitment to returning profits to shareholders.

Conversely, the company is encountering challenges with its cash and cash equivalents, which have fallen to Rs 9.40 crore, the lowest level in the last six half-yearly periods. This decline raises concerns regarding short-term liquidity and the company's financial stability.

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