Cera Sanitaryware's Q2 financials show strong cash flow and dividend payout, but PBT and non-operating income raise concerns.

Cera Sanitaryware, a leading player in the ceramics, marble, granite, and sanitaryware industry, recently announced its financial results for the quarter ending September 2024. The company, which falls under the midcap category, has received a 'Sell' call from MarketsMOJO.

According to the financial report, Cera Sanitaryware has shown a flat performance in the second quarter of the fiscal year 2024-2025. However, there has been an improvement in the company's score, which has increased from -4 to 3 in the last three months.

One of the key factors contributing to the company's success is its strong operating cash flow. Cera Sanitaryware has recorded the highest annual operating cash flow of Rs 236.05 crore and has shown consistent growth in the last three years. This indicates that the company has been able to generate higher revenues from its business operations.

Another positive aspect of Cera Sanitaryware's financials is its dividend payout ratio (DPR). The company has consistently distributed a higher proportion of its profits as dividends, with the highest DPR of 32.65% in the last five years.

However, there are some areas of concern for the company. The profit before tax (PBT) less other income has fallen by 11.24% year on year, standing at Rs 58.76 crore in the September 2024 quarter. This indicates a negative trend in the near term for PBT.

Additionally, the non-operating income for the quarter has reached its highest at Rs 17.76 crore in the last five quarters. While this may seem like a positive, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, Cera Sanitaryware has shown a mixed performance in the September 2024 quarter. While there are some positive aspects, there are also some concerns that investors should keep in mind before making any investment decisions.