Nagarjuna Fertilizers & Chemicals Reports Mixed Financial Results for Q2 FY25

Nagarjuna Fertilizers & Chemicals, a microcap company in the fertilizer industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a ‘Strong Sell’ call by MarketsMOJO.

The company’s performance for the quarter has been flat, with a score of 0 compared to 11 in the previous quarter. However, there are some positive aspects to the financials. The Profit After Tax (PAT) for the half-yearly period has shown a significant growth of 360.93% year on year, reaching Rs 2,438.25 crore. This is also higher than the PAT for the previous 12 months, which was at Rs -1,283.99 crore. The company has already surpassed its PAT for the previous 12 months in just half a year, indicating a positive trend.

The Profit Before Tax less Other Income (PBT) for the quarter is at its highest in the last five quarters, at Rs -23.20 crore. This shows a positive trend in the near term. However, there are some areas of concern in the financials. The Operating Profit to Interest ratio for the quarter is at its lowest in the last five quarters, at -33.64 times. This indicates a deteriorating ability to manage interest payments.

The Net Sales for the half-yearly period have shown a decline of -63.63% year on year, indicating a negative trend in the near term. The Debt-Equity ratio for the half-yearly period is at its highest in the last five periods, at -0.02 times. This shows that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation. The Operating Cash Flow for the last three years is at its lowest, at Rs 44.66 crore, indicating a decline in cash revenues from business operations. The Cash and Cash Equivalents for the half-yearly period are also at their lowest in the last six periods, at Rs 20.48 crore, indicating a deteriorating short-term liquidity situation.

Overall, Nagarjuna Fertilizers & Chemicals has shown a mixed performance in its financials for the quarter ending September 2024. While there are some positive aspects, there are also areas of concern that need to be addressed. Investors are advised to carefully consider these factors before making any investment decisions.