Modi Rubber Reports Mixed Financial Results Amidst Growth in Sales and Liquidity, June 2025

Modi Rubber, a microcap player in the Tyres & Rubber Products industry, has recently reported its financial results for the quarter ending June 2025. The evaluation changes indicate a shift in the company's score, which has adjusted to -3 from -2 over the past three months.
The financial data reveals some positive aspects for Modi Rubber. Net sales for the latest six months reached Rs 14.14 crore, reflecting a year-on-year growth of 31.17%, suggesting a favorable near-term sales trend. Additionally, the company's cash and cash equivalents have reached their highest level in the last six half-yearly periods, totaling Rs 11.33 crore, indicating an improvement in short-term liquidity. Furthermore, the debtors turnover ratio has also shown a positive trend, being the highest at 0.16 times in the last five half-yearly periods, which suggests that the company is settling its debtors more efficiently.

Conversely, there are notable challenges as well. The profit before tax, less other income, has seen a significant decline, reported at Rs 0.03 crore, which is a stark contrast to the average of Rs 1.33 crore from the previous four quarters. This trend points to a very negative near-term outlook for profitability. Additionally, non-operating income constitutes a substantial 99.33% of profit before tax, raising concerns about the sustainability of the company's business model.

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