Anupam Rasayan India's Q2 FY25 Financial Results Show Negative Performance and Challenges Ahead

Anupam Rasayan India, a midcap company in the pesticides and agrochemicals industry, recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a very negative performance in this quarter, with a score of -25, which has improved from -33 in the last three months.

The company’s profit after tax (PAT) for the quarter has fallen by 29.0% to Rs 16.67 crore, compared to the average PAT of the previous four quarters, which was Rs 23.48 crore. This indicates a very negative trend in the near term. Similarly, the net sales for the quarter have also fallen by 12.4% to Rs 293.96 crore, compared to the average net sales of the previous four quarters, which was Rs 335.72 crore.

The profit before tax less other income (PBT) for the quarter has also fallen by 18.1% to Rs 32.09 crore, compared to the average PBT of the previous four quarters, which was Rs 39.19 crore. This shows a very negative trend in the near term. Additionally, the company’s debtors turnover ratio for the half-yearly period is at its lowest at 1.71 times, and has fallen in the last five half-yearly periods. This indicates that the company’s pace of settling its debtors has slowed down.

Moreover, the company’s interest cost for the quarter is at its highest in the last five quarters at Rs 26.66 crore, which has increased by 19.12% compared to the previous quarter. This signifies an increase in borrowings for the company. Furthermore, the company’s cash and cash equivalents for the half-yearly period are at its lowest at Rs 58.67 crore in the last six half-yearly periods. This shows a deteriorating short-term liquidity for the company.

Based on these financial results, MarketsMOJO has given a ‘Strong Sell’ call for Anupam Rasayan’s stock. The company’s performance in this quarter has been very negative, and it is facing challenges in terms of profitability, sales, and liquidity. Investors are advised to carefully consider these factors before making any investment decisions.