Oriental Hotels' Financial Results Show Mixed Performance in Q2 FY25

Oriental Hotels, a smallcap company in the hotel, resort, and restaurant industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for Oriental Hotels is ‘Sell’.

The company has seen a negative financial performance in the last quarter, with a score of -13 compared to 4 in the previous quarter. However, there are some positive aspects to the company’s financials based on the September 2024 report.

Oriental Hotels has been able to maintain a low debt-equity ratio of 0.33 times, with a consistent decrease in borrowing compared to equity capital in the last five half-yearly periods. The company has also shown improvement in its debtors turnover ratio, settling its debtors at a faster rate.

On the other hand, there are some concerning factors in the company’s financials. The profit before tax (PBT) has fallen by 89.74% year on year, and the profit after tax (PAT) has also decreased by 118.3% year on year. The net sales have also seen a decline of 11.47% year on year, and the company’s ability to manage interest payments is deteriorating.

Moreover, the operating profit margin has decreased to 14.29%, and the earnings per share (EPS) have also declined. The company’s short-term liquidity is also deteriorating, with a decrease in cash and cash equivalents in the last six half-yearly periods.

Overall, Oriental Hotels has shown a mixed performance in its financials, with some positive and negative aspects. Investors are advised to carefully analyze the company’s financials before making any investment decisions.