Dhunseri Tea & Industries' Q3 Financial Results: Mixed Performance

Nov 10 2023 12:00 AM IST
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Dhunseri Tea & Industries, a microcap company in the tea/coffee industry, reported a 55.75% increase in net sales and a 59.49% increase in consolidated net profit for the quarter ended September 2023. However, interest expenses also rose by 75.80%, indicating a rise in borrowings. The company's stock call is currently 'Strong Sell' and its financial performance has been deemed as very negative.

Dhunseri Tea & Industries, a microcap company in the tea/coffee industry, recently declared its financial results for the quarter ended September 2023. The company's net sales for the quarter showed a growth of 55.75% compared to the previous quarter, while its consolidated net profit grew by 59.49%. The operating profit (PBDIT) also saw a significant growth of 96.06% compared to the previous quarter.

However, the company's interest expenses also increased by 75.80% in the quarter, indicating a rise in borrowings. The operating profit margin (excluding other income) showed improvement compared to the previous quarter.

According to MarketsMOJO, a financial analysis platform, the stock call for Dhunseri Tea is currently 'Strong Sell'. The company's financial performance for the quarter has been deemed as very negative, with a score of -24, a significant decrease from the previous quarter's score of -14.

On a positive note, the company's net sales for the quarter were the highest in the last five quarters, showing a positive trend. However, its profit before tax (PBT) and profit after tax (PAT) both saw a significant decline compared to the same quarter last year.

The company's operating cash flow has also been decreasing each year for the past three years, indicating a decline in cash revenues from business operations. Additionally, the debt-equity ratio has been increasing each half-yearly period, suggesting that the company is borrowing more to fund its operations.

In conclusion, while Dhunseri Tea & Industries has shown growth in net sales and operating profit, its overall financial performance for the quarter has been deemed as very negative. Investors should carefully consider these factors before making any investment decisions.
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