Reliance Industrial Infrastructure Reports Negative Financial Performance in Q2 FY25

Reliance Industrial Infrastructure, a smallcap company in the capital goods industry, recently declared its financial results for the quarter ending September 2024. According to the data released on October 11, 2024, the company has seen a negative financial performance in the quarter, with a score of -13 compared to -6 in the previous quarter.

The company’s profit after tax (PAT) for the half-yearly period has decreased by 54.11% year on year, indicating a negative trend in the near term. The net sales for the quarter have also fallen by 14.6% compared to the average net sales of the previous four quarters. This shows a negative trend in the company’s sales performance.

Furthermore, Reliance Industrial Infrastructure’s operating cash flow for the year has been the lowest in the last three years, indicating a decline in cash revenues from business operations. The net sales for the quarter have also been the lowest in the last five quarters, further highlighting the negative trend in sales.

The company’s operating profit (PBDIT) for the quarter has been the lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased to -21.13%, indicating a deterioration in the company’s efficiency.

Moreover, the profit before tax (PBT) for the quarter has been the lowest in the last five quarters, with a negative trend in the near term. The non-operating income for the quarter is also high, at 170.34% of the PBT, which is not a sustainable business model.

Based on these financial results, MarketsMOJO has given a ‘Strong Sell’ call for Reliance Industrial Infrastructure’s stock. The company’s negative financial performance and declining trends in key areas suggest that investors should be cautious when considering this stock.