Banswara Syntex's Q1 FY25 Financial Results Show Negative Trends and Concerning Factors

Banswara Syntex, a microcap textile company, recently announced its financial results for the quarter ending June 2024. The company’s performance has been deemed as very negative by MarketsMOJO, with a score of -24, a decrease from -19 in the previous quarter.

Despite this, there are some positive aspects to the company’s financials. Banswara Syntex has shown a strong operating cash flow of Rs 142.44 crore annually in the last three years, indicating higher revenues from business operations.

However, there are also areas of concern. The company’s ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest at 2.04 times and falling each quarter in the last five quarters. Additionally, the profit before tax less other income has fallen by -131.5% compared to the average of the previous four quarters, and the net sales have also decreased by -14.2%.

The company’s operating profit margin has also been on a downward trend, reaching its lowest at 6.10% in the last five quarters. The net sales and operating profit have also been at their lowest in the last five quarters, indicating a negative trend in the near term.

Furthermore, the non-operating income of Banswara Syntex is 271.32% of the profit before tax, which suggests that the company’s income from non-business activities is high and may not be a sustainable business model. The earnings per share have also decreased to its lowest at Rs 0.33 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Overall, Banswara Syntex’s financial performance for the quarter ending June 2024 has been deemed as very negative, with several concerning factors. Investors are advised to exercise caution and consider all aspects before making any investment decisions.