Sterlite Technologies Announces Q2 Financial Results, Debt-Equity Ratio Improves

Sterlite Technologies, a midcap company in the cable industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Sterlite Tech. has shown a flat performance in the second quarter of the fiscal year 2024-2025. However, there has been an improvement in the overall score, which has gone up from -16 to -3 in the last three months.

One of the positive aspects of the company's financials is its debt-equity ratio, which has consistently decreased over the last five half-yearly periods. This indicates that the company has been reducing its borrowing in comparison to its equity capital.

Another highlight is the company's operating cash flow, which has been the highest in the last three years at Rs 791.00 crore. This shows that Sterlite Tech. has been generating higher cash revenues from its business operations.

However, there are some areas of concern in the financials. The net sales for the nine-month period have decreased by 22.85% year on year, indicating a negative trend in the near term. Similarly, the profit after tax has also decreased by the same percentage, showing a negative trend in the near term.

The debtors turnover ratio, which measures the pace of settling debts, has also decreased to its lowest at 2.66 times in the last five half-yearly periods. This suggests that the company's pace of settling its debts has slowed down.

Lastly, the dividend payout ratio for the last five years has been the lowest at 0.00%, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Sterlite Technologies has shown a mixed performance in its financials for the quarter ending September 2024. Investors should carefully analyze the company's financials and market trends before making any investment decisions.