Resonance Specialities Reports Strong Q3 FY24-25 Profit Amid Liquidity Challenges

Resonance Specialities, a microcap company in the chemicals industry, has reported its financial results for the third quarter of FY24-25, declaring a profit after tax (PAT) of Rs 2.83 crore, reflecting a significant year-on-year growth of 99.46%. This positive trend in profitability is complemented by net sales, which reached Rs 18.24 crore, marking the highest quarterly sales in the last five quarters.
However, the company has experienced an adjustment in its evaluation, with its score declining from 23 to 13 over the past three months. Cash and cash equivalents have dropped to Rs 1.67 crore, the lowest level in the last six half-yearly periods, indicating challenges in short-term liquidity. Additionally, the debtors turnover ratio has decreased to 3.95 times, the lowest in the last five half-yearly periods, suggesting a slowdown in the company's ability to settle its debts.

Overall, while Resonance Specialities has demonstrated strong sales and profitability growth, it must address its liquidity and debtor management issues to maintain its financial health.

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