Dhampur Bio Organics Reports Negative Q2 Results, Debtors Turnover Ratio at 5-Year High
Dhampur Bio Organics, a microcap company in the sugar industry, reported a negative financial performance for Q2 FY24-25, with a 'Strong Sell' rating from MarketsMojo. While the company's Debtors Turnover Ratio has improved, its PAT has significantly decreased and interest costs have risen. Net sales and operating profit have also declined, indicating a negative trend in the near term.
Dhampur Bio Organics, a microcap company in the sugar industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.
According to the financial report, Dhampur Bio's performance in Q2 FY24-25 has been very negative, with a score of -23, which has slightly improved from -24 in the last three months. However, there are some positive aspects to the company's financials, such as its Debtors Turnover Ratio, which is at its highest in the last five half-yearly periods at 35.67 times. This indicates that the company has been able to settle its debtors faster.
On the other hand, there are some concerning factors in the financial report. The company's Profit After Tax (PAT) for the quarter is at Rs -23.37 crore, which is a significant decrease of -375.3% compared to the average PAT of the previous four quarters at Rs 8.49 crore. This shows a very negative trend in the near term. Additionally, the company's interest cost has increased by 58.97% in the last half-yearly period, indicating a rise in borrowings.
Furthermore, Dhampur Bio's net sales for the nine-month period have decreased by -27.47% year on year, and its Operating Profit (PBDIT) for the quarter is at its lowest in the last five quarters at Rs -9.74 crore. The company's Operating Profit Margin has also decreased to its lowest at -2.09%, indicating a decline in efficiency. Moreover, the Profit Before Tax less Other Income (PBT) for the quarter is at its lowest in the last five quarters at Rs -36.83 crore, showing a negative trend in the near term. The company's Earnings per Share (EPS) for the quarter is also at its lowest in the last five quarters at Rs -3.52, indicating a decline in profitability and lower earnings for shareholders.
Overall, Dhampur Bio's financial performance for the quarter ending September 2024 has been negative, with some concerning factors that investors should take into consideration.
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