Surya Roshni's Q2 FY25 financials show decline in sales and profitability, 'Sell' call by MarketsMOJO

Surya Roshni, a midcap company in the steel/sponge iron/pig iron industry, recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

According to the financials, the company has seen a negative performance in the quarter, with a score of -12 compared to 1 in the previous 3 months. However, there are some positive aspects to the company’s financials. Surya Roshni has generated the highest operating cash flow of Rs 539.67 crore in the last three years, indicating a strong revenue stream from its business operations. Additionally, the company has also shown improvement in short-term liquidity with its cash and cash equivalents reaching a high of Rs 197.45 crore in the last six half-yearly periods.

On the other hand, there are some concerning factors in the financials. The net sales for the quarter have fallen by -21.9% compared to the average net sales of the previous four quarters, indicating a negative trend in sales. Similarly, the profit before tax less other income (PBT) has also seen a significant decline of -66.7% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also fallen by -62.3% compared to the average PAT of the previous four quarters.

Moreover, the company’s operating profit (PBDIT) and operating profit margin have reached their lowest levels in the last five quarters, indicating a decline in efficiency. The PBT and EPS have also reached their lowest levels in the last five quarters, showing a decline in profitability and earnings for shareholders.

In conclusion, Surya Roshni’s financial performance for the quarter ending September 2024 has been negative, with a ‘Sell’ call by MarketsMOJO. While the company has shown some positive aspects in its financials, there are also concerning factors that need to be addressed for future growth.