Tamil Nadu Petro Products Reports Mixed Performance in Q1 FY25 Financial Results

Tamil Nadu Petro Products, a microcap company in the petrochemical industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, T N Petro Prod. has seen a negative performance in the quarter, with a score of -10, which has improved from -18 in the last three months. However, there are some positive aspects to the company’s financials.

The net sales for the quarter were the highest in the last five quarters, at Rs 462.02 crore, indicating a positive trend in sales. The company also has a strong cash position, with cash and cash equivalents at Rs 422.17 crore in the last six half-yearly periods, showing an improvement in short-term liquidity. Additionally, the company has been able to settle its debtors faster, with a debtors turnover ratio of 17.32 times in the last five half-yearly periods.

On the other hand, there are some areas of concern in the financial report. The profit after tax (PAT) for the quarter has fallen by 43.8% compared to the average PAT of the previous four quarters. The operating profit (PBDIT) has also been on a downward trend, with the lowest at Rs 11.65 crore in the last five quarters. The operating profit margin has also decreased, indicating a decline in the company’s efficiency. Furthermore, the non-operating income for the quarter is 64.52% of the profit before tax (PBT), which suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

Overall, the financial results for the quarter ending March 2024 show a mixed performance for Tamil Nadu Petro Products. While there are some positive aspects, there are also areas of concern that the company needs to address in order to improve its financial standing. Investors are advised to carefully consider these factors before making any investment decisions.