NGL Fine-Chem ‘s Q2 Update: Profit Falls by 6.39% Year-on-Year

The comprehensive analytics outlining the performance and outlook of NGL Fine-Chem 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 NGL Fine-Chem 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 16.6 %. However, it did see a marginal increase of 3.01 % from the previous quarter. Expenses ticked up slightly by 0.63 % quarter-on-quarter, aligning with the annual rise of 23.73 %. Operating profit, while down -17.25 % compared to last year, faced a quarter-on-quarter increase of 23.77 %, 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 -5.05 %, but an expansion of 2.08 % sequentially. Other income fell by -13.08 % compared to the last quarter, despite an annual growth of 58.9 %. Interest expenses dropped significantly by -27.27 % from the previous quarter, yet the year-over-year decrease remains at a moderate -11.11 %. Depreciation costs climbed by 0.66 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 4.84 %. Profit before tax declined annually by -4.38 % but saw an increase from the preceding quarter by 13.16 %.
Tax expenses as a percentage of profits increased slightly by 1.57 % compared to last year, with a more notable quarter-on-quarter increase of 4.59 %. Net profit fell by -6.39 % year-on-year but experienced a 6.4 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -6.37 % but a quarterly rise of 6.43 %. In summary, NGL Fine-Chem Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing NGL Fine-Chem Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 16.6 % year-on-year growth, however, there was a minor increase of 3.01 % from the previous quarter. Expenses rose by 23.73 % compared to the previous year, with a 0.63 % increase quarter-on-quarter. Operating Profit dropped by -17.25 % annually, and saw a 23.77 % increase from the last quarter.
Net Profit showed yearly decrease of -6.39 %, and experienced a 6.4 % increase from the previous quarter. Earnings Per Share (EPS) fell by -6.37 % annually, however rose by 6.43 % compared to the last quarter. In essence, while NGL Fine-Chem 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.