Andhra Sugars' Q3 financials show mixed performance, with highest net sales but declining profits

Andhra Sugars, a smallcap company in the diversified industry, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Strong Sell'.

According to the financials, Andhra Sugars has seen a negative performance in the quarter, with a score of -18 compared to -15 in the previous quarter. 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 528.42 crore, and the near term sales trend is positive.

On the other hand, there are some areas that are not working in favor of Andhra Sugars. The Profit Before Tax (PBT) has fallen by 98.5% compared to the average of the previous four quarters, and the Profit After Tax (PAT) has also fallen by 75.9%. The company's operating cash flow is at its lowest in the last three years, indicating a decline in cash revenues from business operations.

Another concerning aspect is the high non-operating income, which is 98.22% of the PBT. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model. The earnings per share (EPS) for the quarter are also at their lowest in the last five quarters, indicating a decline in profitability.

Furthermore, the company's debtors turnover ratio is at its lowest in the last five half-yearly periods, indicating a slower pace in settling its debtors. Andhra Sugars has also distributed a lower dividend per share (DPS) compared to the previous years.

Overall, the financial results for the quarter ending September 2024 for Andhra Sugars show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.