Seshasayee Paper & Boards Reports Decline in Financial Health for Q2 FY25

Seshasayee Paper & Boards, a smallcap company in the paper and paper products industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financials, Seshasayee Paper has seen a very negative performance in the quarter, with a score of -23 compared to -21 in the previous quarter. This indicates a decline in the company’s financial health.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by 73.52% year on year. The company’s Profit After Tax (PAT) has also seen a significant decline of 61.1% year on year. The Operating Profit (PBDIT) has been consistently falling in the last five quarters, indicating a negative trend in the near term. The Operating Profit Margin has also decreased each quarter in the last five quarters, showing a deterioration in the company’s efficiency.

The company’s cash flow from business operations has also been on a downward trend, with the lowest amount of Rs 202.17 crore in the last three years. Additionally, the company’s non-operating income, which is 41.37% of the PBT, is quite high and may not be a sustainable business model.

The earnings per share (EPS) for the quarter have also decreased to the lowest amount of Rs 4.73 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The company’s non-operating income has also increased in the last five quarters, which may not be sustainable in the long run.

Overall, Seshasayee Paper & Boards has shown a very negative financial performance in the quarter ending September 2024. Investors should carefully consider these factors before making any investment decisions.