SRF's Q2 FY25 Financial Results Show Decline in Profitability and Efficiency

SRF, a largecap company in the diversified industry, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, the stock call for SRF is ‘Sell’.

The company’s financial performance for the quarter has been very negative, with a score of -20, which has improved from -23 in the last 3 months. This indicates a decline in profitability and efficiency for SRF.

Some key areas that have contributed to this negative performance include a decrease in Profit Before Tax (PBT) and Profit After Tax (PAT) by 31.1% and 34.4% respectively, compared to the average of the previous four quarters. The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters.

Furthermore, SRF’s interest costs have increased by 20.94% over the previous half-year period, indicating a rise in borrowings. The company’s Operating Profit (PBDIT) for the quarter is also the lowest in the last five quarters, and the Operating Profit Margin has decreased to 15.71%.

In addition, the company’s Earnings per Share (EPS) for the quarter is the lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders. SRF has also seen a significant increase in Non-Operating Income, which may not be sustainable in the long run.

Overall, SRF’s financial results for the quarter ending September 2024 have been disappointing, with a negative trend in key areas. Investors should take note of these factors before making any investment decisions.