Dhampur Sugar Mills' Q2 Financial Report Shows Significant Decline, Receives 'Strong Sell' Call

Dhampur Sugar Mills, a smallcap company in the sugar industry, recently declared its financial results for the quarter ending September 2024. However, the news is not positive for the company as it has received a 'Strong Sell' call from MarketsMOJO.

According to the financial report, Dhampur Sugar has seen a significant decline in its financial performance in the second quarter of the fiscal year 2024-25. The company's score has fallen from -29 to -34 in the last three months, indicating a very negative trend.

The key areas where the company has faced challenges include a decrease in Profit Before Tax (PBT) and Profit After Tax (PAT), as well as a decline in Net Sales. The PBT for the quarter was at Rs -25.79 crore, which is a significant drop of -207.0% compared to the average PBT of the previous four quarters. Similarly, the PAT for the quarter was at Rs -13.48 crore, a decrease of -159.6% compared to the average PAT of the previous four quarters.

The company's Net Sales for the quarter also saw a decline of -10.9% compared to the average Net Sales of the previous four quarters. Additionally, the company's ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters.

The company's financial report also shows a rise in interest costs, indicating increased borrowings. Moreover, the Operating Cash Flow for the year has been the lowest in the last three years, indicating a decline in cash revenues from business operations.

The company's Operating Profit (PBDIT) for the quarter was also at its lowest in the last five quarters, and the Operating Profit Margin was also at its lowest in the last five quarters, indicating a decline in efficiency.

Overall, the financial report for the quarter ending September 2024 shows a negative trend for Dhampur Sugar Mills. The company's profitability has declined, and it has also distributed lower dividends to its shareholders compared to previous years. With the 'Strong Sell' call from MarketsMOJO, investors may want to closely monitor the company's performance in the coming quarters.