SMS Lifesciences India Reports Strong Financial Performance in Q2 FY25

SMS Lifesciences India, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, SMS Lifesciences has shown a very positive performance in the second quarter of FY24-25. The company’s score has improved from 31 to 21 in the last three months.

One of the key highlights of the financials is the growth in Profit Before Tax (PBT) which has increased by 91.37% year on year, reaching Rs 2.66 crore. The trend for PBT in the near term is also very positive. Similarly, the Profit After Tax (PAT) has seen a significant growth of 586.8% year on year, reaching Rs 4.67 crore. The near term trend for PAT is also very positive.

In terms of sales, the company has shown a growth of 25.70% year on year, with net sales reaching Rs 261.00 crore in the nine-month period. The near term trend for sales is also positive.

On the other hand, the Debt-Equity Ratio for the company has been consistently decreasing over the last five half-yearly periods, reaching its lowest at 0.49 times. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

However, there are some areas that need improvement for SMS Lifesciences. The Debtors Turnover Ratio has been consistently falling in the last five half-yearly periods, reaching its lowest at 4.68 times. This indicates that the company’s pace of settling its debtors has slowed down.

Another concern is the Non-Operating Income, which accounts for 43.40% of the Profit Before Tax. This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

Lastly, the company’s cash and cash equivalents have reached their lowest at Rs 1.19 crore in the last six half-yearly periods, indicating a deterioration in short-term liquidity.

Overall, SMS Lifesciences has shown a positive financial performance in the quarter ending September 2024, with some areas that need improvement. Investors are advised to hold their stock and keep an eye on the company’s progress in the coming months.