Reliance Infrastructure's Q1 FY25 financial results show mixed performance, highest PAT in 5 quarters

Reliance Infrastructure, a midcap power company, has recently declared its financial results for the quarter ended March 2024. According to the latest report, the company has seen a flat financial performance in the quarter, with a score of -2, which has improved from -5 in the last three months.

Despite the overall flat performance, there are some positive aspects to be noted from the financial results. The company has recorded its highest Profit After Tax (PAT) in the last five quarters, at Rs -220.58 crore. This shows a positive trend in the near term for the company’s profitability. Additionally, the Earnings per Share (EPS) have also increased, reaching its highest at Rs -5.57 in the last five quarters. This indicates that the company has been able to create higher earnings for its shareholders.

Another positive aspect is the company’s Cash and Cash Equivalents, which have reached its highest at Rs 2,081.27 crore in the last six half-yearly periods. This shows an improvement in the company’s short-term liquidity. Additionally, the Debtors Turnover Ratio has also improved, reaching its highest at 12.96 times in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster.

However, there are also some negative aspects to be noted from the financial results. The Profit Before Tax less Other Income (PBT) has fallen by -26.8% over the average PBT of the previous four quarters, reaching Rs -302.12 crore. This shows a very negative trend in the near term for the company’s PBT. Similarly, the Net Sales have also fallen by -13.1% over the average of the previous four quarters, reaching Rs 4,685.96 crore. This indicates a very negative trend in the near term for the company’s sales.

Overall, the financial results for the quarter ended March 2024 for Reliance Infrastructure show a mix of positive and negative aspects. While the company has shown improvement in some areas, there are also areas that need attention. MarketsMOJO has given a ‘Hold’ call for the company’s stock, indicating a neutral stance. Investors should carefully analyze the financial results and make informed decisions.