Keerthi Industries' Q2 financial results show mixed performance, investors urged to exercise caution

Keerthi Industries, a microcap cement company, recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Strong Sell'.

According to the financials, Keerthi Industries has seen a very negative performance in the second quarter of the fiscal year 2024-2025, with a score of -22, a decrease from -18 in the last three months.

However, there are some positive aspects to the company's financials. The operating cash flow for the year is at its highest in the last three years, with a revenue of Rs 15.51 crore generated from business operations.

On the other hand, there are some concerning factors as well. The net sales for the quarter have fallen by 40.1% compared to the average net sales of the previous four quarters. The profit before tax less other income has also decreased by 71.3% compared to the average of the previous four quarters. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The debt-equity ratio for the company has been consistently increasing in the last five half-yearly periods, indicating that the company is borrowing more to fund its operations. The profit after tax has also decreased by 32.35% year on year, and the net sales for the quarter are at its lowest in the last five quarters.

The operating profit and profit before tax less other income are also at their lowest in the last five quarters, and the company's efficiency has deteriorated. The cash and cash equivalents for the company are also at its lowest in the last six half-yearly periods, indicating a deteriorating short-term liquidity situation.

Moreover, the debtors turnover ratio, which measures the pace of settling debtors, is also at its lowest in the last five half-yearly periods. Additionally, the company has distributed lower dividends compared to previous years.

Overall, the financial results for the quarter ending September 2024 for Keerthi Industries show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.