Dhunseri Tea & Industries Reports Mixed Financial Results for Q1 2024

May 28 2024 06:00 PM IST
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Dhunseri Tea & Industries, a microcap company in the tea/coffee industry, reported a negative performance in the quarter ending March 2024, with a -17 score. However, net sales have grown by 21.72% year on year, while profit before tax and after tax have seen a decline. Investors should carefully analyze the financial report before making any investment decisions.

Dhunseri Tea & Industries, a microcap company in the tea/coffee industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Dhunseri Tea has seen a negative performance in the quarter, with a score of -17, which has improved from -18 in the last three months. However, there are some positive aspects to the company's financials. The net sales for the half-yearly period have grown by 21.72% year on year, indicating a positive sales trend in the near term.

On the other hand, there are some concerning factors in the financial report. The profit before tax less other income (PBT) for the quarter has fallen by -128.79% year on year, and the profit after tax (PAT) has also seen a decline of -111.0% year on year. The interest cost has increased by 49.84% quarter on quarter, indicating a rise in borrowings. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, and the operating profit margin has decreased to -228.53%. The PBT for the quarter is also at its lowest in the last five quarters, and the earnings per share (EPS) have also declined to -79.42. This shows a declining profitability for the company and lower earnings for shareholders.

Overall, the financial results for the quarter ending March 2024 for Dhunseri Tea & Industries show a mix of positive and negative trends. Investors should carefully consider these factors before making any investment decisions.
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