Are Caprolactam Chem latest results good or bad?

Caprolactam Chemicals has reported its financial results for the quarter ending June 2025, showcasing a notable year-on-year growth in net sales of 59.51% for the nine-month period, amounting to Rs 6.46 crore. This growth is complemented by the highest operating profit before depreciation, interest, and taxes (PBDIT) in the last five quarters, reaching Rs 1.04 crore. Additionally, both profit before tax (PBT) and profit after tax (PAT) achieved their highest levels during this timeframe, at Rs 0.49 crore and Rs 0.36 crore, respectively, with earnings per share (EPS) rising to Rs 0.78.
However, the company is facing challenges, particularly with its cash and cash equivalents, which have fallen to Rs 0.08 crore, the lowest in the last six half-year periods, indicating a potential concern regarding short-term liquidity. Furthermore, the debtors turnover ratio has decreased to 2.39 times, suggesting a slowdown in the collection of receivables.

Overall, while Caprolactam Chemicals has demonstrated significant operational achievements in terms of sales and profitability, it is also contending with liquidity challenges and a slower pace in settling debts. Additionally, the company saw an adjustment in its evaluation over the last three months.