RCF's Q2 FY25 financials show mixed results, with concerns over interest cost and non-operating income

Rashtriya Chemicals & Fertilizers (RCF), a midcap company in the fertilizer industry, recently declared 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, RCF’s performance in Q2 FY24-25 has been flat, with a score of -2 compared to -25 in the previous quarter. However, there are some positive aspects to the company’s financials. The Profit Before Tax (PBT) less Other Income has shown a significant growth of 1119.12% YoY, reaching Rs 63.76 crore. The Profit After Tax (PAT) has also grown by 54.7% YoY, amounting to Rs 78.96 crore. The Operating Profit (PBDIT) for the quarter is the highest in the last five quarters, at Rs 201.51 crore.

On the other hand, there are some concerns in RCF’s financials. The interest cost has increased by 45.90% over the previous half-yearly period, reaching Rs 146.47 crore. This indicates a rise in borrowings for the company. Additionally, the Non-Operating Income for the quarter is 40.05% of the PBT, which suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

Overall, RCF’s financial performance for the quarter ending September 2024 has been mixed. While there are some positive trends in terms of PBT and PAT, there are also concerns regarding interest cost and non-operating income. Investors should carefully evaluate these factors before making any investment decisions.