Divyashakti Reports Mixed Q4 Results Amidst Operational Challenges and Profitability Gains

Divyashakti, a microcap player in the Ceramics, Marble, Granite, and Sanitaryware industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a mixed performance, with notable achievements in net sales and profitability metrics, while also highlighting challenges in operational efficiency.
For the quarter, Divyashakti recorded its highest net sales in the last five quarters at Rs 18.92 crore, reflecting a growth of 23.5% compared to the average of the previous four quarters. Additionally, the company achieved its highest profit after tax (PAT) of Rs 1.25 crore and earnings per share (EPS) of Rs 1.22, signaling a positive trend in profitability.

However, the financial results also reveal areas of concern. The operating profit (PBDIT) fell to its lowest point in five quarters at Rs -0.29 crore, accompanied by a negative operating profit margin of -1.53%. Furthermore, the profit before tax (PBT) also reached a low of Rs -0.93 crore. The company’s reliance on non-operating income, which constituted 152.54% of PBT, raises questions about the sustainability of its business model. Additionally, cash and cash equivalents have decreased to Rs 7.23 crore, indicating a decline in short-term liquidity.

In light of these results, Divyashakti has experienced an adjustment in its evaluation, reflecting the complexities of its current financial landscape.

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