Delphi World's Q1 2024 Financials Show Negative Performance and Unsustainable Business Model

Delphi World, a microcap finance company, recently announced its financial results for the quarter ending March 2024. The company's performance has been deemed negative by MarketsMOJO, with a "Strong Sell" stock call.

According to the financials, Delphi World's net sales for the quarter were at Rs 15.51 crore, showing a significant decline of 33.20% compared to the same period last year. This trend is expected to continue in the near term. The company's profit before tax less other income (PBT) also saw a sharp decline of 98.43% year on year, standing at Rs 0.05 crore. This is the lowest PBT in the last five quarters, indicating a negative trend in the company's performance.

Delphi World's operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, standing at Rs 0.97 crore. The operating profit margin also saw a decline, reaching its lowest at 6.25%. This indicates a deterioration in the company's efficiency.

The company's non-operating income, which includes income from non-business activities, was at 98.92% of its PBT. This suggests that a significant portion of the company's income is not generated from its core business activities, which may not be a sustainable business model. Additionally, the non-operating income for the quarter was at its highest in the last five quarters, standing at Rs 4.58 crore.

Based on these financials, it is evident that Delphi World has seen a negative performance in the quarter ending March 2024. The company's sales, PBT, and operating profit have all declined, and its non-operating income has increased significantly. Investors should take note of these factors before making any investment decisions.