Ramky Infra's Q2 FY24-25 financials show mixed results, with some positive and negative aspects

Ramky Infrastructure, a smallcap company in the capital goods industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financials, Ramky Infra's performance for Q2 FY24-25 has been relatively flat, with a score of -3 compared to 0 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the highlights is the company's operating profit to interest ratio, which has been the highest in the last five quarters at 4.32 times. This indicates that Ramky Infra is improving in its ability to manage interest payments. Additionally, the company's debt-equity ratio has been consistently decreasing over the past five half-yearly periods, indicating a reduction in borrowing compared to equity capital.

Another positive aspect is the company's debtors turnover ratio, which has been the highest in the last five half-yearly periods at 5.30 times. This shows that Ramky Infra has been able to settle its debtors faster.

However, there are also some areas of concern in the financials. The profit before tax (PBT) less other income has fallen by -29.87% year on year, and the profit after tax (PAT) has also fallen by -30.6% year on year. This indicates a negative trend in the near term for PBT and PAT. Additionally, the net sales for the quarter have also decreased by -9.35% year on year, showing a negative trend in the near term.

Overall, Ramky Infrastructure's financial performance for the quarter ending September 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.