La Opala RG's Q2 FY25 financials show mixed performance, with high reliance on non-operating income

La Opala RG, a smallcap glass company, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, La Opala RG’s performance for Q2 FY24-25 has remained flat. However, there has been a slight improvement in the company’s score, which has gone from -11 to -4 in the last three months.

One of the positive aspects of La Opala RG’s financials is its high operating profit to interest ratio, which stands at 24.81 times in the last five quarters. This indicates that the company is effectively managing its interest payments.

On the other hand, the company’s profit after tax (PAT) for the half-yearly period has decreased by 20.35% year on year, standing at Rs 47.72 crore. The trend for PAT in the near term is negative. Additionally, the company’s operating cash flow for the last three years has been the lowest at Rs 68.20 crore, indicating a decline in cash revenues from business operations.

Moreover, the company’s profit before tax less other income (PBT) for the quarter has fallen by 5.1% compared to the average PBT of the previous four quarters. This trend is also negative in the near term. Furthermore, the company’s non-operating income for the quarter is 39.26% of its PBT, which is a cause for concern as it indicates a high reliance on non-business activities for income.

It is worth noting that La Opala RG’s non-operating income for the quarter is the highest in the last five quarters, which may not be sustainable in the long run. Overall, the financial results for the quarter ending September 2024 show a mixed performance for La Opala RG, with some positive and negative aspects to consider.