James Warren Tea Reports Strong Financial Performance in Q2 of FY 2024-25

James Warren Tea, a microcap company in the tea/coffee industry, has recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financial report, James Warren Tea has shown a very positive performance in the second quarter of the fiscal year 2024-25. The company's score has improved from 14 to 28 in the last three months.

The company's net sales for the quarter were Rs 75.38 crore, which is a significant growth of 144.4% compared to the average net sales of the previous four quarters, which was Rs 30.85 crore. This indicates a very positive trend in the company's sales.

Similarly, the company's profit before tax less other income (PBT) for the quarter was Rs 37.85 crore, showing a growth of 1496.7% compared to the average PBT of the previous four quarters, which was -2.71 crore. The profit after tax (PAT) for the quarter was Rs 37.56 crore, showing a growth of 1044.2% compared to the average PAT of the previous four quarters, which was Rs 3.28 crore. These figures indicate a very positive trend in the company's profitability.

The company's operating profit (PBDIT) for the quarter was the highest in the last five quarters at Rs 38.56 crore, and the operating profit margin was also the highest at 51.15%. This shows that the company's efficiency has improved.

The earnings per share (EPS) for the quarter were the highest in the last five quarters at Rs 101.51, indicating an increase in profitability and higher earnings for shareholders.

However, the company's operating cash flow has been consistently falling in the last three years, with the lowest being Rs -15.62 crore in the last year. This indicates that the company's cash revenues from business operations are declining.

Overall, James Warren Tea has shown a very positive financial performance in the quarter ending September 2024, with a significant increase in sales and profitability. However, the company needs to address the issue of declining operating cash flow to sustain its growth in the long run.