Resonance Specialities Reports Mixed Performance in Q1 FY25 Financial Results

Resonance Specialities, a microcap chemical company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Resonance Specialities has shown a flat performance in the quarter, with a score of 0 compared to -10 in the previous quarter. However, there are some positive aspects to the company’s financials.

The net sales for the quarter were the highest in the last five quarters, at Rs 17.30 crore. This shows a positive trend in the company’s sales in the near term. Additionally, the net sales have grown by 28.53% year on year, indicating a positive trend in the company’s sales performance.

The operating profit (PBDIT) for the quarter was also the highest in the last five quarters, at Rs 2.08 crore. This shows a positive trend in the company’s operating profit in the near term. The operating profit margin was also the highest in the last five quarters, at 12.02%, indicating an improvement in the company’s efficiency.

The profit before tax (PBT) less other income for the quarter was the highest in the last five quarters, at Rs 1.50 crore. This shows a positive trend in the company’s PBT in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters, at Rs 1.20 crore, indicating a positive trend in the company’s profitability.

However, there are some areas of concern for Resonance Specialities. The company’s cash and cash equivalents for the half-yearly period were the lowest in the last six periods, at Rs 2.16 crore. This shows a deterioration in the company’s short-term liquidity. Additionally, the debtors turnover ratio for the half-yearly period was the lowest in the last five periods, indicating a slower pace of settling debts.

Furthermore, the company’s dividend per share (DPS) for the last five years has been the lowest at Rs 0.00. This shows that the company is distributing lower dividends compared to previous years. The dividend payout ratio (DPR) for the last five years has also been the lowest at 0.00%, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Resonance Specialities has shown a mixed performance in the quarter ending June 2024. While there are some positive aspects to the company’s financials, there are also some areas of concern that need to be addressed. Investors are advised to carefully consider these factors before making any investment decisions.