Vardhman Polytex's Q2 financials show negative performance and declining trends

Vardhman Polytex, a microcap textile company, recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financial report, Vardhman Polytex has seen a negative performance in the second quarter of the fiscal year 2024-2025. The company's score has improved slightly from -20 to -18 in the last three months.

One of the major concerns for the company is its Profit After Tax (PAT) for the half-yearly period, which has decreased by 45.61% year on year, standing at Rs -10.12 crore. The trend for near-term PAT is also negative.

Another worrying factor is the company's Operating Cash Flow, which has been consistently falling over the last three years and is currently at its lowest at Rs -13.78 crore annually. This indicates a decline in the company's cash revenues from business operations.

The Net Sales for the quarter have also seen a significant decrease of 13.9% compared to the average of the previous four quarters. This is a cause for concern as the near-term sales trend is also negative.

The company's Non-Operating Income for the quarter is at a high of 1,485.71% of Profit Before Tax (PBT). This indicates that the company's income from non-business activities is significant, which may not be a sustainable business model.

Moreover, the Non-Operating Income for the quarter is also at its highest in the last five quarters, standing at Rs 9.36 crore. This increase in income from non-business activities may not be sustainable in the long run.

Overall, Vardhman Polytex's financial performance for the quarter ending September 2024 has been negative, with various factors indicating a decline in the company's business operations. Investors are advised to take note of these financials before making any investment decisions.