Duroply Industries' Q1 2024 Financial Results Show Decline in Profitability and Concerns Over Interest Payments

Duroply Industries, a microcap company in the wood products industry, recently announced its financial results for the quarter ending March 2024. According to the data released on May 17, 2024, the company's performance has been deemed as Very Negative by MarketsMOJO, with a stock call of 'Sell'.

The company's net sales for the quarter were at their highest in the last five quarters, reaching Rs 84.46 crore. This indicates a positive trend in near-term sales. However, there are some areas of concern for Duroply Industries. The company's operating profit to interest ratio has been consistently falling in the last five quarters, reaching its lowest point at 0.44 times. This suggests that the company's ability to manage interest payments is deteriorating.

Moreover, the company's profit before tax less other income (PBT) for the quarter was at Rs -2.51 crore, a significant decrease of 308.3% compared to the average PBT of the previous four quarters. This trend is also reflected in the company's profit after tax (PAT), which fell by 209.3% compared to the average PAT of the previous four quarters.

Another concerning factor is the company's rising interest cost, which has increased by 29.95% quarter on quarter. This indicates that the company has taken on more borrowings. Additionally, Duroply Industries' operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, and the operating profit margin has also been consistently falling.

Overall, the company's financial performance for the quarter ending March 2024 has been deemed as Very Negative. The company's profitability has declined, and there are concerns about its ability to manage interest payments. Investors should take note of these factors before making any investment decisions.