Dhunseri Tea & Industries Reports Mixed Performance in Q1 FY25 Financial Results

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 ‘Sell’ call by MarketsMOJO.

According to the financial report, Dhunseri Tea’s performance for the quarter was flat, with a score of 1 compared to -20 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating profit to interest ratio for the quarter was the highest in the last five quarters, indicating an improvement in the company’s ability to manage interest payments. The operating profit (PBDIT) for the quarter was also the highest in the last five quarters, showing a positive trend in the near term. The operating profit margin was also at its highest in the last five quarters, indicating an improvement in the company’s efficiency.

The profit before tax (PBT) less other income for the quarter was the highest in the last five quarters, with a positive trend in the near term. The profit after tax (PAT) for the quarter was also the highest in the last five quarters, with a positive trend in the near term. This has resulted in an increase in the earnings per share (EPS) for the quarter, showing that the company has been able to create higher earnings for its shareholders.

However, there are also some areas of concern for Dhunseri Tea. The operating cash flow for the year was the lowest in the last three years, with a decline each year. This indicates that the company’s cash revenues from business operations are falling. Additionally, the debt-equity ratio for the half year was the highest in the last five half yearly periods, with a continuous increase. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, Dhunseri Tea & Industries has shown a mixed performance in the quarter ending March 2024. While there are some positive aspects to the company’s financials, there are also some areas of concern that investors should keep in mind.