Mangalam Cement Reports Mixed Q3 Results Amid Concerns Over Business Sustainability

Mangalam Cement has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of performance within the small-cap cement industry. The company has experienced a notable adjustment in its evaluation, with its score shifting to -7 from -15 over the past three months.
On a positive note, the Profit Before Tax (PBT) for the quarter stands at Rs 7.71 crore, reflecting a growth of 60.4% compared to the average PBT of the previous four quarters, which was Rs 4.81 crore. This trend indicates a favorable near-term outlook for PBT. Additionally, the company has achieved its highest cash and cash equivalents in the last six half-yearly periods, totaling Rs 160.39 crore, suggesting an improvement in short-term liquidity.

Conversely, the Profit After Tax (PAT) has shown a decline, recorded at Rs 7.81 crore, which represents a decrease of 41.7% from the average PAT of Rs 13.39 crore over the previous four quarters. Furthermore, a significant portion of the company's income, 40.83% of PBT, is derived from non-operating activities, raising concerns about the sustainability of its business model.

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