Reliance Chemotex Industries Reports Mixed Financial Results for Q2 2024

Reliance Chemotex Industries, a microcap company in the textile industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Reliance Chemotex has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -10, which has improved from -20 in the last three months.

However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the quarter was the highest in the last five quarters at Rs 1.42 crore, indicating a positive trend in the near term. The Earnings per Share (EPS) for the quarter was also the highest in the last five quarters at Rs 1.88, showing an increase in profitability and higher earnings for shareholders. The Dividend Payout Ratio (DPR) for the year was also the highest in the last five years at 23.55%, indicating that the company is distributing a higher proportion of its profits as dividends.

On the other hand, there are some areas of concern in the financial report. The interest cost for the half-yearly period has increased by 23.70% compared to the previous period, indicating a rise in borrowings. The Inventory Turnover Ratio for the half-yearly period has also decreased each year in the last five years, showing a slower pace of selling inventory. The company's non-operating income for the quarter was 1,102.94% of the Profit Before Tax (PBT), which is a cause for concern as it indicates a high income from non-business activities. The cash and cash equivalents for the half-yearly period were at their lowest in the last six periods, indicating a deterioration in short-term liquidity. The Debtors Turnover Ratio for the half-yearly period has also decreased in the last five years, showing a slower pace of settling debts. Additionally, the Dividend per Share (DPS) for the year was the lowest in the last five years, indicating a decrease in the company's distribution of dividends.

Overall, the financial results for the quarter ending September 2024 show a mix of positive and negative aspects for Reliance Chemotex Industries. Investors should carefully consider these factors before making any investment decisions.