KDDL Ltd's Q2 FY24-25 financials show strong cash flow and sales, but declining PBT

KDDL Ltd, a smallcap company in the miscellaneous industry, recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Hold'. According to the financials, KDDL Ltd has shown a flat performance in the second quarter of FY24-25. However, there has been an improvement in the score from -13 to 2 in the last three months. One of the key factors contributing to the company's performance is its strong operating cash flow. In the last three years, KDDL Ltd has consistently generated the highest annual operating cash flow of Rs 97.87 crore and has shown growth each year. This indicates that the company has been able to generate higher cash revenues from its business operations. Another positive aspect for KDDL Ltd is its net sales, which have been the highest in the last five quarters at Rs 396.34 crore. The near-term sales trend for the company is also positive. On the other hand, the profit before tax (PBT) less other income for the company has fallen by -8.09% year on year, standing at Rs 35.77 crore in the September 2024 quarter. This indicates a negative trend in the near term for PBT. Additionally, KDDL Ltd has shown a high dividend payout ratio (DPR) of 76.23% in the last five years, indicating that the company distributes a higher proportion of its profits as dividends. However, the company's non-operating income has been the highest in the last five quarters at Rs 13.72 crore. This may not be sustainable as it comes from non-business activities. Overall, KDDL Ltd has shown a mixed performance in the September 2024 quarter, with some positive and negative aspects. Investors are advised to hold their stocks and keep an eye on the company's future financial results.