M M Rubber Co's Q2 Financial Report Shows Decline in Profitability and Efficiency

Nov 12 2024 09:44 AM IST
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M M Rubber Co, a microcap company in the rubber products industry, has reported a negative financial performance for the quarter ending September 2024. The company's score has fallen from -2 to -10, with a decline in Profit After Tax, Operating Cash Flow, and Operating Profit. Investors are advised to exercise caution.

M M Rubber Co, a microcap company in the rubber products industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, M M Rubber has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -2 to -10 in the last three months, indicating a decline in its financial health.

One of the major factors contributing to this negative performance is the company's Profit After Tax (PAT), which has fallen by 514.3% to Rs -2.58 crore compared to the average PAT of the previous four quarters, which was Rs -0.42 crore. This trend is expected to continue in the near term.

The company's Operating Cash Flow has also been a cause for concern, with the lowest figure of Rs -1.05 crore in the last three years. This indicates a decline in the company's cash revenues from business operations.

Furthermore, M M Rubber's Operating Profit (PBDIT) for the quarter has been the lowest in the last five quarters at Rs -2.12 crore. This trend is also expected to continue in the near term, indicating a negative outlook for the company's profitability.

The company's Operating Profit Margin has also deteriorated, with the lowest figure of -19.54% in the last five quarters. This indicates a decline in the company's efficiency.

In addition, the company's Profit Before Tax less Other Income (PBT) for the quarter has been the lowest in the last five quarters at Rs -2.59 crore. This trend is also expected to continue in the near term, indicating a negative outlook for the company's profitability.

Overall, M M Rubber Co's financial performance for the quarter ending September 2024 has been negative, with declining profitability and efficiency. Investors are advised to exercise caution and consider the 'Strong Sell' call given by MarketsMOJO before making any investment decisions.
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