RBZ Jewellers Ltd's Q2 financials show mixed results, with concerns over operating cash flow

This could be a cause for concern for investors.
RBZ Jewellers Ltd, a microcap company in the diamond and gold jewellery industry, has recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, RBZ Jewellers Ltd has shown a flat performance in the second quarter of the fiscal year 2024-2025. The company's score has decreased from 5 to 3 in the last three months.

However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the half-yearly period has grown by 28.46% year on year, reaching Rs 17.15 crore. The near-term trend for PAT is also positive. Additionally, the company's net sales for the quarter have reached a five-quarter high of Rs 116.60 crore, showing a growth of 30.1% over the average net sales of the previous four quarters. The near-term trend for net sales is also positive.

On the other hand, RBZ Jewellers Ltd has seen a decline in its operating cash flow, with the annual figure being the lowest at Rs -48.21 crore and falling each year for the past three years. This could be a cause for concern for investors as it indicates a decrease in the company's cash revenues from business operations.

Overall, RBZ Jewellers Ltd has shown a mixed financial performance in the recent quarter, with some positive and negative aspects. Investors are advised to hold their position in the stock, as suggested by MarketsMOJO.