Rungta Irrigation Reports Mixed Performance in Q3

Rungta Irrigation, a microcap company in the plastic products industry, has recently declared its financial results for the quarter ended September 2023. According to the analysis by MarketsMOJO, the stock call for Rungta Irrigation is 'Hold'.

In the quarter ended September 2023, Rungta Irrigation saw a 17.60% growth in net sales compared to a -42.24% growth in the previous quarter. However, the standalone net profit saw a decline of -47.98% in the same period, as opposed to a 96.04% growth in the previous quarter. The operating profit (PBDIT) excluding other income also saw a decline of -56.02% compared to a 33.67% growth in the previous quarter. The interest expenses also saw a decline of -3.45% compared to a -59.72% decline in the previous quarter. The operating profit margin (excluding other income) also saw a decline from the previous quarter.

Despite the decline in some areas, Rungta Irrigation has shown positive financial performance in the quarter ended September 2023. The company's score has fallen from 27 to 19 in the last 3 months, indicating a positive trend.

The company's profit after tax (PAT) for the half-yearly period has grown by 514.29% year on year, with a very positive trend. The PAT for the half-yearly period is also higher at Rs 3.01 crore compared to the preceding 12 months period ended September 2023 of Rs 2.98 crore. The company has already surpassed its PAT for the previous twelve months in just half a year. The debtors turnover ratio for the half-yearly period is also at its highest at 3.96 times, showing a consistent growth in the last five half-yearly periods. This indicates that the company has been able to settle its debtors faster.

However, the net sales for the quarter ended September 2023 has fallen by -9.9% compared to the average net sales of the previous four quarters. This shows a negative trend in the near term for the company.

Overall, Rungta Irrigation has shown a mixed performance in the quarter ended September 2023. Investors are advised to hold their position in the company's stock and keep an eye on its future financial results.