Seshasayee Paper & Boards Reports Q3 FY24-25 Results Amid Operational Challenges and Liquidity Gains

Seshasayee Paper & Boards has recently reported its financial results for the third quarter of FY24-25, revealing notable shifts in key performance metrics. The company's Profit Before Tax (PBT) registered at Rs -4.61 crore, reflecting a significant year-on-year change. Similarly, Profit After Tax (PAT) was reported at Rs 16.63 crore, indicating a substantial decline compared to the previous year.
The operating profit also experienced a downturn, reaching Rs 7.64 crore, with an operating profit margin of only 1.77%. This trend suggests challenges in the company's operational efficiency over the past five quarters. Furthermore, the inventory turnover ratio has decreased to 5.49 times, pointing to a slowdown in inventory sales.

On a more favorable note, Seshasayee Paper reported cash and cash equivalents of Rs 742.05 crore, marking the highest level in the last six half-yearly periods, which indicates an enhancement in short-term liquidity. However, the company's heavy reliance on non-operating income, which accounted for 128.90% of PBT, raises questions about the long-term viability of its business model.

In light of these developments, there have been evaluation changes regarding the stock's score.

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