Asian Hotels (East) Reports Negative Financial Performance in Q1 FY25

Asian Hotels (East) has recently declared its financial results for the quarter ending June 2024. The company has seen a negative financial performance, with a score of -12 compared to 8 in the previous quarter. This decline can be attributed to various factors, including a significant increase in interest costs and a decrease in net sales.

One of the major concerns for the company is its rising interest cost, which has grown by 182.53% over the previous half-yearly period. This indicates that the company has taken on more borrowings, which could potentially impact its financial stability. Additionally, the company’s ability to manage its interest payments has deteriorated, with the operating profit to interest ratio falling to its lowest at 0.07 times.

The company’s profit before tax (PBT) has also seen a significant decline, with a negative growth of -698.1% compared to the average PBT of the previous four quarters. This trend is also reflected in the company’s profit after tax (PAT), which has fallen by -106.1% compared to the average PAT of the previous four quarters.

Furthermore, the company’s net sales have also seen a decline of -17.1% compared to the average net sales of the previous four quarters. This indicates a negative trend in the company’s sales performance in the near term. The operating profit margin has also reached its lowest at 2.58%, indicating a decline in the company’s efficiency.

Moreover, the company’s non-operating income is significantly high, at 1,379.17% of its PBT. This suggests that the company’s income from non-business activities is not sustainable in the long run. The earnings per share (EPS) have also declined to its lowest at Rs -0.23, indicating a decrease in profitability and lower earnings for shareholders.

In conclusion, Asian Hotels (East) has seen a negative financial performance in the quarter ending June 2024. The company’s rising interest costs, declining profitability, and decreasing sales trend are major concerns for investors. Based on these factors, MarketsMOJO has given a ‘Sell’ call for the company’s stock.