Reliance Industrial Infrastructure's Q1 FY25 Financial Results Show Significant Decline, Stock Call 'Sell'

Reliance Industrial Infrastructure, a smallcap company in the capital goods industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Reliance Industrial Infrastructure is ‘Sell’.

The company has seen a negative financial performance in the quarter, with a score of -13 compared to -6 in the previous quarter. This is a significant decline in just three months.

One of the major factors contributing to this decline is the company’s Profit After Tax (PAT), which has shown a year-on-year decrease of 54.11%. The net sales for the quarter have also fallen by 14.6% compared to the average of the previous four quarters. This trend is expected to continue in the near term.

Furthermore, the company’s operating cash flow has been at its lowest in the last three years, indicating a decline in cash revenues from business operations. The net sales for the quarter have also been the lowest in the last five quarters, with a negative trend expected to continue.

The operating profit (PBDIT) for the quarter has also been at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased significantly, indicating a decline in the company’s efficiency.

Moreover, the company’s profit before tax (PBT) has been at its lowest in the last five quarters, with a negative trend expected to continue. The non-operating income for the quarter is also high, at 170.34% of the PBT, which is not a sustainable business model.

Overall, the financial results for the quarter ending June 2024 have not been favorable for Reliance Industrial Infrastructure. Investors are advised to take note of these factors before making any investment decisions.