GNFC's Q3 financial results show negative trends, cash reserves and debtors turnover improve.

Gujarat Narmada Valley Fertilizers & Chemicals (GNFC), a midcap company in the fertilizer industry, recently declared its financial results for the quarter ended December 2023. According to MarketsMOJO, a leading financial analysis platform, the stock call for GNFC is 'Hold'.

The company's financial performance for the quarter has been very negative, with a score of -24 compared to -21 in the previous quarter. However, there are some positive aspects to the financials. GNFC's cash and cash equivalents have increased to Rs 2,782.00 crore in the last six half yearly periods, indicating an improvement in short term liquidity. The debtors turnover ratio has also improved, with the company being able to settle its debtors faster.

On the other hand, there are some concerning factors in the financials. The net sales for the quarter have fallen by -21.89% year on year, indicating a very negative sales trend in the near term. The profit before tax less other income (PBT) has also seen a significant decline of -99.72% year on year, with a negative trend in the near term. The profit after tax (PAT) has also fallen by -70.2% year on year, with a negative trend in the near term. The operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased to its lowest at 4.02% in the last five quarters, indicating a deterioration in the company's efficiency. The non-operating income for the quarter is also high, at 99.18% of the PBT, which is not a sustainable business model.

Overall, GNFC's financial performance for the quarter ended December 2023 has been very negative. Investors are advised to hold their positions in the stock, as per MarketsMOJO's recommendation.