Modi Rubber ‘s Q2 Results: Profit Drops by 40.99% YoY

The comprehensive analytics outlining the performance and outlook of Modi Rubber 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 Modi Rubber 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 26.31 %. However, it did see a marginal increase of 11.78 % from the previous quarter. Expenses ticked up slightly by 19.24 % quarter-on-quarter, aligning with the annual rise of 24.86 %. Operating profit, while down -24.57 % compared to last year, faced a quarter-on-quarter dip of -20.21 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 10.19 %, but a shrinkage of -51.27 % sequentially. Other income rose by 591.05 % compared to the last quarter, despite an annual decline of -24.26 %. Interest expenses surged remarkably by 0 % from the previous quarter, yet the year-over-year increase remains at a moderate 54.55 %. Depreciation costs climbed by 4.41 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 9.23 %. Profit before tax declined annually by -34.61 % but saw an increase from the preceding quarter by 793.22 %.
Tax expenses as a percentage of profits increased slightly by 8.89 % compared to last year, with a more notable quarter-on-quarter increase of 47.33 %. Net profit fell by -40.99 % year-on-year but experienced a 540.72 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -41.05 % but a quarterly rise of 539.02 %. In summary, Modi Rubber Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Modi Rubber Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 26.31 % year-on-year growth, however, there was a minor increase of 11.78 % from the previous quarter. Expenses rose by 24.86 % compared to the previous year, with a 19.24 % increase quarter-on-quarter. Operating Profit dropped by -24.57 % annually, and saw a -20.21 % decrease from the last quarter.
Net Profit showed yearly decrease of -40.99 %, and experienced a 540.72 % increase from the previous quarter. Earnings Per Share (EPS) fell by -41.05 % annually, however rose by 539.02 % compared to the last quarter. In essence, while Modi Rubber 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.