Rungta Irrigation Reports Strong PAT Growth Amid Declining Liquidity Challenges in December 2024

Rungta Irrigation, a microcap player in the plastic products industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a notable performance in several key areas. The Profit After Tax (PAT) for the half-year reached Rs 4.34 crore, reflecting a significant year-on-year growth of 71.54%. Additionally, the company achieved its highest quarterly net sales in the last five quarters, totaling Rs 70.01 crore, which represents a growth of 58.0% compared to the average net sales of the previous four quarters.
However, the financial results also highlight some challenges. The company's cash and cash equivalents have reached their lowest point in the last six half-yearly periods, standing at Rs 0.07 crore, indicating a decline in short-term liquidity. Furthermore, the Debtors Turnover Ratio has also dropped to 2.53 times, the lowest in the last five half-yearly periods, suggesting a slowdown in the pace of settling debts.

As a result of these developments, Rungta Irrigation has experienced an adjustment in its evaluation, with its score reflecting a change from 15 to 14 over the past three months.

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