Barak Valley Cements' Q1 FY25 financials show mixed performance, with highest net sales but declining profits

Barak Valley Cements, a microcap company in the cement industry, recently declared its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

According to the financials, Barak Valley has seen a negative performance in the quarter, with a score of -13 compared to 14 in the previous 3 months. However, there are some positive aspects to the company’s performance. The net sales for the quarter were the highest in the last five quarters at Rs 68.59 crore, with a positive trend in the near term. The net sales have also grown by 21.3% over the average of the previous four quarters, indicating a positive trend.

On the other hand, there are some areas where Barak Valley’s performance has not been as strong. The profit before tax less other income (PBT) for the quarter has fallen by -98.9% compared to the average of the previous four quarters. The profit after tax (PAT) has also seen a decline of -148.2% over the average of the previous four quarters. The interest cost has increased by 25.15% quarter on quarter, which could signify increased borrowings for the company. The operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments.

The company’s operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin is also at its lowest in the last five quarters, indicating a decline in the company’s efficiency. The non-operating income for the quarter is 98.75% of the PBT, which could suggest that the company’s income from non-business activities is high and not sustainable in the long run.

The earnings per share (EPS) for the quarter are also at their lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The non-operating income for the quarter is also at its highest in the last five quarters, which may not be sustainable in the long run.

Overall, Barak Valley Cements has seen a mix of positive and negative performance in the quarter ending June 2024. Investors should carefully consider these factors before making any investment decisions.