Aarti Drugs' Q2 FY25 financial report shows mixed performance, strong operating cash flow

Aarti Drugs, a smallcap pharmaceutical company, has recently declared its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Aarti Drugs has shown a flat performance in the quarter, with a slight improvement in its score from -16 to -2 in the last three months. However, there are some positive aspects to the company’s financials.

One of the key highlights is the company’s strong operating cash flow, which has been consistently growing over the past three years. In the last fiscal year, Aarti Drugs recorded the highest operating cash flow of Rs 358.92 crore, indicating a strong revenue generation from its business operations.

On the other hand, there are some areas of concern for Aarti Drugs. The company’s Profit Before Tax (PBT) has fallen by -16.0% in the quarter, compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term, as indicated by the very negative PBT trend.

Similarly, the company’s Profit After Tax (PAT) has also seen a decline of -10.7% in the quarter, compared to the average PAT of the previous four quarters. This negative trend is also expected to continue in the near term.

Overall, Aarti Drugs has shown a mixed performance in the quarter, with some positive and negative aspects. Investors are advised to hold their positions in the company’s stock, as recommended by MarketsMOJO.