Exxaro Tiles Reports Negative Financial Performance

Exxaro Tiles, a microcap company in the ceramics/marble/granite/sanitaryware industry, has recently declared its financial results for the quarter ended September 2023. According to the analysis by MarketsMOJO, the stock call for Exxaro Tiles is 'Strong Sell'.

In the quarter ended September 2023, Exxaro Tiles saw a growth of 11.33% in net sales compared to a decline of 20.96% in the previous quarter. The consolidated net profit also showed improvement with a growth of 37.50% compared to a decline of 85.45% in the previous quarter. However, the operating profit (PBDIT) excluding other income saw a slight decline of 2.53% compared to a decline of 16.58% in the previous quarter. The interest cost also saw a decline of 4.21% compared to an increase of 13.74% in the previous quarter. The operating profit margin (excluding other income) has fallen from the previous quarter.

Despite the slight improvements in some areas, Exxaro Tiles has seen a very negative financial performance in the quarter ended September 2023. The overall score has improved from -29 to -21 in the last 3 months, but it still remains in the negative range.

Based on the financials of September 2023, there are some concerning factors for Exxaro Tiles. The profit after tax (PAT) for the nine-month period has shown a decline of 77.03% year on year, and the near-term trend is also negative. The operating cash flow has been consistently falling in the last three years, indicating a decline in cash revenues from business operations. The interest cost has also been increasing, which could signify increased borrowings by the company. The debt-equity ratio has been consistently rising, indicating that the company is relying more on borrowings to fund its operations. The debtors turnover ratio has also been consistently falling, indicating a slower pace of settling debts. The profit before tax (PBT) has been negative for the last five quarters, and the cash and cash equivalents have been consistently declining in the last six half-yearly periods, indicating a deteriorating short-term liquidity situation.

In conclusion, based on the financial results of September 2023, Exxaro Tiles has shown a very negative performance. The company's stock call is 'Strong Sell' according to MarketsMOJO, and there are some concerning factors such as declining profits, increasing interest costs, and deteriorating liquidity. Investors should carefully consider these factors before making any investment decisions.