Dalmia Bharat Ltd's Q2 financials show decline in profits and efficiency.

Dalmia Bharat Ltd, a leading player in the cement industry, recently announced its financial results for the quarter ending September 2024. The company's performance has been negative, with a score of -14 compared to 3 in the previous quarter.

However, there are some positive aspects to the financials. Dalmia Bharat Ltd has shown a strong operating cash flow of Rs 2,635.00 Cr annually, with a consistent growth over the last three years. The company has also distributed higher dividends to its shareholders, with a dividend per share (DPS) of Rs 9.00 in the last five years. The dividend payout ratio (DPR) has also been high at 152.68%, indicating that the company is sharing a larger portion of its profits with its shareholders.

On the other hand, there are some concerning factors in the financials. The profit before tax (PBT) has fallen by 100% to Rs 0.00 Cr in the current quarter, compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of 80% to Rs 46.00 Cr in the current quarter. The net sales have also fallen by 15.9% to Rs 3,087.00 Cr in the current quarter, compared to the average net sales of the previous four quarters.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters. The operating profit (PBDIT) has also seen a decline, with the lowest figure of Rs 434.00 Cr in the last five quarters. The operating profit margin has also fallen to its lowest at 14.06%, indicating a decline in the company's efficiency.

The non-operating income of the company is 100% of the profit before tax, which is not a sustainable business model. The earnings per share (EPS) have also declined to its lowest at Rs 2.42 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

In conclusion, Dalmia Bharat Ltd's financial performance for the quarter ending September 2024 has been negative. While there are some positive aspects, there are also concerning factors that need to be addressed by the company. Investors are advised to take a cautious approach and MarketsMOJO has given a 'Sell' call for the stock.