Rainbow Childrens Medicare Reports Decline in Financial Performance for Q1 FY25

Rainbow Childrens Medicare, a midcap healthcare services company, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Rainbow Childrens Medicare has seen a negative performance in the quarter, with a score of -14 compared to -6 in the previous quarter. This indicates a decline in the company’s financial health.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by 35.7% to Rs 41.42 crore compared to the average PBT of the previous four quarters at Rs 64.44 crore. The trend for near term PBT is also negative.

Similarly, the Profit After Tax (PAT) has also seen a decline of 27.1% to Rs 39.53 crore compared to the average PAT of the previous four quarters at Rs 54.25 crore. This indicates a negative trend for near term PAT.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters at 5.16 times. Additionally, the interest cost has increased by 26.85% in the previous half-year period, indicating increased borrowings.

The PBT less Other Income has also been the lowest in the last five quarters at Rs 41.42 crore, further highlighting the negative trend for near term PBT. The Earnings per Share (EPS) has also seen a decline, being the lowest at Rs 3.89 in the last five quarters. This indicates a decline in profitability and lower earnings for shareholders.

Overall, Rainbow Childrens Medicare has seen a negative financial performance in the quarter ending March 2024, with declining trends in key financial indicators. Investors are advised to hold their stock and monitor the company’s performance in the upcoming quarters.