Dhunseri Ventures' Q2 financials show growth in sales and profits, but concerns remain

Dhunseri Ventures, a smallcap company in the chemicals industry, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company's stock has been given a 'Hold' call by MarketsMOJO.

The financial performance of Dhunseri Ventures for the second quarter of the fiscal year 2024-25 has remained flat, with a score of 4 out of 10, a decrease from the previous score of 8 in the last 3 months.

However, there are some positive aspects to the company's financials. The net sales for the half-yearly period have shown a significant growth of 272.09% year on year, reaching Rs 309.58 crore. The profit before tax less other income (PBT) for the quarter has also shown a growth of 141.1% over the average PBT of the previous four quarters, reaching Rs 92.45 crore. The profit after tax (PAT) for the quarter has also shown a growth of 48.5% over the average PAT of the previous four quarters, reaching Rs 67.77 crore. This indicates a positive trend in the near term for the company's PBT and PAT.

Moreover, Dhunseri Ventures has also shown a positive trend in terms of dividend payout ratio (DPR), with the highest DPR of 11.44% in the last five years. This shows that the company is distributing a higher proportion of its profits as dividends.

However, there are some areas of concern for the company. The interest cost for the quarter has increased by 742.74% quarter on quarter, reaching Rs 19.72 crore. This signifies increased borrowings by the company. The debtors turnover ratio for the half-yearly period has also decreased to its lowest at 131.77 times in the last five half-yearly periods, indicating a slower pace of settling its debtors.

Overall, Dhunseri Ventures has shown a mixed financial performance for the quarter ending September 2024. While there are some positive aspects, there are also some areas of concern that the company needs to address in order to improve its financials. Investors are advised to hold their stocks for now and keep a close eye on the company's future performance.