Rama Phosphates Reports Strong PAT Growth Amid Declining Debtors Turnover Ratio in December 2024

Rama Phosphates, a microcap player in the fertilizers industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable shift in the company's evaluation, with the score adjusting to 16 from 21 over the past three months.
The financial data reveals several positive trends for Rama Phosphates. The Profit After Tax (PAT) for the half-year stands at Rs 6.74 crore, reflecting a significant year-on-year growth of 123.19%. This upward trajectory in PAT is complemented by a robust operating profit to interest ratio, which has reached its highest point at 3.20 times, indicating an enhanced capacity to manage interest obligations effectively. Additionally, net sales for the half-year have also shown a positive trend, amounting to Rs 389.08 crore, which represents a year-on-year growth of 35.28%. Notably, the PAT for this half-year has already surpassed the total for the preceding twelve months.

However, the company faces challenges as well. The Debtors Turnover Ratio has declined to 7.42 times, marking the lowest level in the last five half-year periods, suggesting a slowdown in the pace of settling debts.

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