Orient Cement's Q2 FY24-25: Decline in Net Sales and Profitability, But High Dividend Payout Ratio Maintained

Despite the negative financial performance, Orient Cement has maintained its dividend payout ratio at a high of 26.36% annually, showing its commitment to distributing profits to shareholders. However, the company's net sales have fallen by 24.50% year on year, indicating a negative trend in the near term. The profit before tax, after deducting other income, has also seen a significant decline of 101.13% year on year, while the profit after tax has fallen by 90.6% year on year.

In the last five quarters, Orient Cement has recorded its lowest net sales and operating profit, with a negative trend in both areas. The operating profit margin has also decreased to its lowest at 8.13%, indicating a decline in the company's efficiency. The non-operating income is also high, at 114.74% of the profit before tax, which may not be sustainable in the long run.

The earnings per share have also decreased to its lowest at Rs 0.11 in the last five quarters, showing a decline in profitability and creating lower earnings for shareholders. The company's short-term liquidity has also deteriorated, with its cash and cash equivalents at its lowest in the last six half-yearly periods. Additionally, the debtors turnover ratio has slowed down, indicating a delay in the company's pace of settling its debtors.

In conclusion, Orient Cement has seen a negative financial performance in the quarter Q2 FY24-25, with a decline in net sales, operating profit, and profitability. However, the company has maintained its commitment to distributing profits to shareholders through a high dividend payout ratio. Investors are advised to hold their stocks in Orient Cement, as recommended by MarketsMOJO.