Shanthi Gears Reports Mixed Financial Results with Strong Cash Flow and Declining Sales in June 2025

Shanthi Gears, a small-cap player in the industrial manufacturing sector, has released its financial results for the quarter ending June 2025. The evaluation changes reflect a stable score over the past three months, indicating consistency in its assessment.
The financials reveal several noteworthy aspects. On a positive note, the company has achieved its highest operating cash flow in three years, amounting to Rs 90.79 crore, showcasing its ability to generate cash from business operations. Additionally, the annual dividend per share has reached Rs 5.00, marking the highest distribution in five years, which reflects a commitment to returning value to shareholders.

Conversely, there are areas of concern. The net sales for the quarter have recorded a decline, standing at Rs 134.89 crore, which is the lowest in the last five quarters and shows a significant drop compared to the previous four-quarter average. Furthermore, the debtors turnover ratio has decreased to 4.41 times, indicating a slowdown in the company's ability to settle its receivables. The dividend payout ratio has also reached its lowest point in five years at 39.94%, suggesting a reduced proportion of profits being returned as dividends.

Overall, Shanthi Gears' financial results present a mixed picture, with both positive cash flow and dividend metrics contrasted by declining sales and turnover ratios.

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