Shiva Cement's Q2 FY25 Financial Results Show Mixed Performance, Concerns for Investors

Shiva Cement, a smallcap company in the cement industry, recently declared its financial results for the quarter ending September 2024. According to the latest report, the company’s performance has remained flat, with a score of -4 compared to 1 in the previous quarter.

Despite this, there are some positive aspects to Shiva Cement’s financials. The company has shown a consistent growth in its operating cash flow, with the highest amount of Rs 252.64 crore in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

However, there are also some concerning factors in the financial report. The net sales for the quarter have fallen by -54.4% to Rs 50.53 crore, compared to the average net sales of the previous four quarters at Rs 110.84 crore. This shows a negative trend in the company’s sales performance in the near term.

Similarly, the profit before tax (PBT) has also decreased by -59.3% to Rs -46.89 crore, compared to the average PBT of the previous four quarters at Rs -29.44 crore. The same trend is seen in the profit after tax (PAT), which has fallen by -57.6% to Rs -33.61 crore.

Another concerning aspect is the company’s ability to manage interest payments, with the operating profit to interest ratio at its lowest in the last five quarters at -0.32 times. This indicates a deteriorating ability to handle interest payments.

Overall, Shiva Cement’s financial performance for the quarter ending September 2024 has been below expectations, with negative trends in sales, operating profit, and profit before tax. Investors should take note of these factors before making any investment decisions.