Garment Mantra's Q1 FY25 financials show growth in PAT and net sales, but concerns over rising debt and interest costs

Garment Mantra Lifestyle, a microcap company in the textile industry, has 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, Garment Mantra has seen a flat performance in the quarter, with a score of 3 out of 10, compared to 9 in the previous quarter. However, there are some positive aspects to the company’s financials. The Profit After Tax (PAT) for the nine-month period has shown a significant growth of 275.36% year on year, and the trend is expected to continue. The Net Sales for the quarter have also shown a growth of 48.83% year on year, indicating a positive sales trend in the near future. Additionally, the PAT for the nine-month period is higher than the previous 12-month period, showing a strong sales performance.

On the other hand, there are some concerns regarding Garment Mantra’s financials. The interest cost for the half-yearly period has increased by 38.25%, indicating a rise in borrowings. The Debt-Equity ratio is also at its highest in the last five half-yearly periods, at 2.10 times. This suggests that the company is relying more on borrowings to fund its operations, which may lead to a stressed liquidity situation.

Overall, Garment Mantra’s financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.