Manali Petrochemicals' Q3 2024 Financial Results Show Negative Performance Across Multiple Areas

Manali Petrochemicals, a smallcap company in the petrochemicals industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Manali Petrochem is 'Strong Sell'.

The company's financial performance for the quarter has been very negative, with a score of -21 compared to 12 in the previous quarter. However, there are some positive aspects to the company's financials based on the September 2024 results. Manali Petrochem has a high Dividend Payout Ratio (DPR) of 67.18%, indicating that it distributes a higher proportion of its profits as dividends.

On the other hand, there are several areas where the company's financials are not performing well. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -195.7% compared to the average of the previous four quarters. The Profit After Tax (PAT) has also seen a significant decline of -97.2% compared to the average of the previous four quarters. The company's Operating Cash Flow has been falling each year for the past three years, indicating a decline in cash revenues from business operations.

Moreover, the company's ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. The interest cost has also increased, indicating a rise in borrowings. The Net Sales for the quarter have fallen by -5.2% compared to the average of the previous four quarters, and the Operating Profit (PBDIT) is at its lowest in the last five quarters. The Operating Profit Margin has also declined, indicating a decrease in the company's efficiency.

Furthermore, the Non Operating Income for the quarter is 1,052.73% of the Profit Before Tax (PBT), which suggests that the company's income from non-business activities is high and not sustainable in the long run. The Earnings per Share (EPS) for the quarter is also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The company's Short Term liquidity is also deteriorating, with the Cash and Cash Equivalents being at its lowest in the last six half-yearly periods.

In conclusion, Manali Petrochemicals has seen a very negative financial performance for the quarter ending September 2024. While there are some positive aspects, such as a high DPR, the company's financials are not performing well in several areas. Investors should carefully consider these factors before making any investment decisions.