Gayatri Sugars reports strong financial performance in Q1, but rising interest cost a concern

Gayatri Sugars, a microcap company in the sugar industry, has recently declared its financial results for the quarter ending March 2024. The company has shown a positive performance in this quarter, with a significant improvement in its financial score from -15 to 8 in the last three months.

One of the key factors contributing to this positive performance is the growth in net sales. The company's net sales for the quarter were Rs 224.63 crore, which is a 137.0% increase compared to the average net sales of the previous four quarters. This indicates a strong sales trend in the near term.

Another positive aspect of Gayatri Sugars' financials is the growth in Profit Before Tax (PBT) less Other Income. The company's PBT for the quarter was Rs 33.26 crore, which is a significant increase of 827.8% compared to the average PBT of the previous four quarters. This shows a very positive trend in PBT in the near term.

The company's Profit After Tax (PAT) also saw a significant growth of 805.6% compared to the average PAT of the previous four quarters. This indicates a strong performance in terms of profitability in the near term.

However, one area of concern for Gayatri Sugars is the rising interest cost. The company's interest for the nine-month period was Rs 18.70 crore, which is a 26.87% increase compared to the preceding nine months. This suggests that the company has taken on increased borrowings, which could impact its financials in the future.

Overall, Gayatri Sugars has shown a positive financial performance in the quarter ending March 2024. However, investors should keep an eye on the rising interest cost and its impact on the company's financials in the future. MarketsMOJO has given a 'Sell' call for the company's stock based on its financial performance.