EID Parry's Q2 financials show mixed results, with positive sales but declining profits

EID Parry (India), a midcap company in the sugar industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financials, EID Parry has seen a negative performance in the second quarter of the fiscal year 2024-25, with a score of -13, which has improved from -14 in the last three months.

However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters, at Rs 9,330.35 crore, and the near-term sales trend is positive. The company also has a strong cash position, with cash and cash equivalents at their highest in the last six half-yearly periods, at Rs 3,175.13 crore. This indicates an improvement in short-term liquidity.

On the other hand, there are some areas of concern for EID Parry. The profit after tax (PAT) for the quarter has fallen by 32.4% year on year, at Rs 305.63 crore, and the near-term trend for PAT is negative. Similarly, the profit before tax less other income (PBT) has also fallen by 15.53% year on year, at Rs 741.55 crore, and the near-term trend for PBT is also negative. The company's interest cost has also increased by 12.35% quarter on quarter, with the highest interest cost in the last five quarters, indicating increased borrowings. Additionally, the company's debtors turnover ratio is at its lowest in the last five half-yearly periods, at 12.92 times, indicating a slower pace of settling its debtors.

Overall, EID Parry's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors are advised to hold their position in the company's stock, as per the recommendation of MarketsMOJO.