Khaitan Chemicals & Fertilizers ‘s Q2 Report: Profit Decreases by 2890.91% YoY

The comprehensive analytics outlining the performance and outlook of Khaitan Chemicals & Fertilizers Limited‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Khaitan Chemicals & Fertilizers Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 19.31 %. However, it did see a marginal increase of 77.32 % from the previous quarter. Expenses ticked up slightly by 62.13 % quarter-on-quarter, aligning with the annual rise of 21.44 %. Operating profit, while down -17.92 % compared to last year, faced a quarter-on-quarter increase of 225.33 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -1.7 %, but an expansion of 9.01 % sequentially. Other income rose by 322.54 % compared to the last quarter, despite an annual decline of -55.49 %. Interest expenses surged remarkably by 5.7 % from the previous quarter, yet the year-over-year increase remains at a moderate 0.39 %. Depreciation costs climbed by 14.57 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 3.56 %. Profit before tax declined annually by -403.39 % but saw an increase from the preceding quarter by 89.29 %.
Tax expenses as a percentage of profits decreased slightly by -152.55 % compared to last year, with a more notable quarter-on-quarter decrease of -71.6 %. Net profit fell by -2890.91 % year-on-year but experienced a 81.63 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -3300 % but a quarterly rise of 81.4 %. In summary, Khaitan Chemicals & Fertilizers Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Khaitan Chemicals & Fertilizers Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 19.31 % year-on-year growth, however, there was a minor increase of 77.32 % from the previous quarter. Expenses rose by 21.44 % compared to the previous year, with a 62.13 % increase quarter-on-quarter. Operating Profit dropped by -17.92 % annually, and saw a 225.33 % increase from the last quarter.
Net Profit showed yearly decrease of -2890.91 %, and experienced a 81.63 % increase from the previous quarter. Earnings Per Share (EPS) fell by -3300 % annually, however rose by 81.4 % compared to the last quarter. In essence, while Khaitan Chemicals & Fertilizers Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.