Delta Corp's Q1 financial results show decline in sales and profitability, stock call 'Sell'.

Delta Corp, a smallcap company in the hotel industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Delta Corp is 'Sell'.

The company's financial performance for the quarter has been very negative, with a score of -26 compared to -22 in the previous quarter. This decline can be attributed to various factors, including a decrease in net sales by 23.8% compared to the average of the previous four quarters. The company's profit before tax less other income (PBT) has also fallen by 71%, and the profit after tax (PAT) has decreased by 59.1% compared to the average of the previous four quarters.

Moreover, Delta Corp's net sales for the quarter were the lowest at Rs 180.65 crore and have been declining each quarter in the last five quarters. The operating profit (PBDIT) for the quarter was also the lowest at Rs 30.58 crore, and the operating profit margin was at its lowest at 16.93%. This indicates a decline in the company's efficiency.

Furthermore, the company's non-operating income is 48.71% of its PBT, which suggests that a significant portion of its income is from non-business activities. This may not be a sustainable business model in the long run. The earnings per share (EPS) for the quarter were also at their lowest at Rs 0.81, indicating a decline in profitability and lower earnings for shareholders.

In addition, Delta Corp's debtors turnover ratio for the half-yearly period was the lowest at 98.44 times in the last five periods. This suggests that the company's pace of settling its debtors has slowed down.

Overall, Delta Corp's financial performance for the quarter ending June 2024 has been disappointing, and the stock call by MarketsMOJO is 'Sell'. Investors should carefully consider these factors before making any investment decisions.