Kriti Nutrients Maintains Strong Cash Flow, But Concerns Arise Over Profit Decline

Despite the flat financial performance in the second quarter of FY24-25, Kriti Nutrients has maintained a strong operating cash flow of Rs 49.81 crore annually. This is a positive sign for the company as it has shown consistent growth in the last three years. However, the profit after tax (PAT) for the quarter has fallen by 18.6% compared to the average of the previous four quarters. This is a cause for concern as the near term trend for PAT is negative.

The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the near term. The operating profit margin has also decreased to 7.09%, showing a decline in the company's efficiency. The profit before tax (PBT) less other income is also at its lowest in the last five quarters, with a negative trend in the near term.

On a positive note, Kriti Nutrients has seen an increase in non-operating income, which is at its highest in the last five quarters. However, this may not be sustainable as it comes from non-business activities.

Based on these financial results, MarketsMOJO has given a 'Hold' call for Kriti Nutrients' stock. It is important for investors to closely monitor the company's financial performance in the coming quarters to make informed decisions.