Jayant Agro Organics Reports Flat Q3 Performance Amid Positive Sales Growth and Liquidity Concerns

Jayant Agro Organics, a small-cap player in the chemicals industry, has recently reported its financial results for the quarter ending December 2024. The company has experienced a flat financial performance for the third quarter of FY24-25. Notably, there has been an adjustment in its evaluation, with the score moving to -1 from -6 over the past three months.
On a positive note, the company’s net sales for the half-year reached Rs 1,177.84 crore, reflecting a year-on-year growth of 21.56%. This indicates a favorable near-term sales trend. Additionally, the profit after tax (PAT) for the nine-month period stands at Rs 43.46 crore, also showing a year-on-year increase of 20.99%, suggesting a positive near-term PAT trend.

However, challenges remain for Jayant Agro Organics. The inventory turnover ratio has reached its lowest point at 6.59 times, indicating a slowdown in the pace of selling inventory. Similarly, the debtors turnover ratio has also declined to 10.53 times, reflecting a slower pace in settling debts. Furthermore, cash and cash equivalents have fallen to Rs 10.45 crore, highlighting deteriorating short-term liquidity.

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