Khaitan Chemicals & Fertilizers Reports Negative Financial Results for Q1 FY25

Khaitan Chemicals & Fertilizers, a microcap company in the fertilizer industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Khaitan Chemicals has seen a very negative performance in the quarter, with a score of -31, which has improved from -40 in the last three months. This indicates a decline in the company’s financial health.

One of the major factors contributing to this decline is the decrease in net sales, which have fallen by -20.52% year on year. This trend is expected to continue in the near term. Additionally, the company’s profit before tax (PBT) has also decreased by -80.82% year on year, and its profit after tax (PAT) has fallen by -129.5% year on year. This shows a significant decline in profitability for the company.

Another concerning aspect is the company’s debt-equity ratio, which has been consistently increasing in the last five half-yearly periods. This indicates that the company is relying more on borrowing to fund its operations, which could lead to a stressed liquidity situation.

Moreover, the company’s debtors turnover ratio has also been decreasing in the last five half-yearly periods, indicating a slower pace of settling its debtors. This could further impact the company’s financial performance.

In the last nine months, the company’s interest costs have also increased by 27.25%, which could be a result of increased borrowings. Lastly, the company’s cash and cash equivalents have been consistently decreasing in the last six half-yearly periods, indicating a deteriorating short-term liquidity situation.

Overall, the financial results for the quarter ending June 2024 for Khaitan Chemicals & Fertilizers have been negative, with various factors contributing to the decline. Investors are advised to carefully consider these factors before making any investment decisions.