Star Cement's Q2 financials show mixed results, with highest operating cash flow but declining profits

Nov 09 2024 04:55 PM IST
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Star Cement, a midcap company in the cement industry, has reported its financial results for the quarter ending September 2024. While the company's operating cash flow has been the highest in the last three years, its profit before tax and profit after tax have seen a significant decline. The company's efficiency and profitability have also deteriorated, as seen in the decrease in operating profit and earnings per share. Investors should carefully analyze these factors before making any investment decisions.

Star Cement, a midcap company in the cement industry, recently declared its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Star Cement has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -17 compared to -16 in the previous quarter. However, there are some positive aspects to the company's financials.

One of the highlights is the company's operating cash flow, which has been the highest in the last three years at Rs 489.75 crore. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas that are not performing well for Star Cement. The profit before tax less other income (PBT) for the quarter has fallen by 90% year on year, and the profit after tax (PAT) has also seen a decline of 85.9% year on year. The operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, and the operating profit margin has also decreased to its lowest at 14.90%. This indicates a deterioration in the company's efficiency.

The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, which shows a decline in profitability and lower earnings for shareholders.

Overall, the financial results for the quarter ending September 2024 for Star Cement have been negative, with some areas showing improvement while others have seen a decline. Investors should carefully consider these factors before making any investment decisions.
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