Generic Engineer's Financial Results Show Decline

Generic Engineering Construction & Projects, a microcap company in the engineering industry, recently declared its financial results for the quarter ended September 2023. According to the analysis by MarketsMOJO, the stock call for the company is 'Strong Sell'.

In the quarter ended September 2023, Generic Engineer saw a decline in net sales by 29.53% compared to the previous quarter. However, the standalone net profit showed a growth of 56.31%. The operating profit (PBDIT) excluding other income also saw a decline of 26.27%. The interest cost for the company also increased by 24.87%, indicating a rise in borrowings. Despite the negative financial performance, the operating profit margin (excluding other income) showed improvement compared to the previous quarter.

The overall financial score for Generic Engineer has fallen to -25 from -23 in the last three months, indicating a very negative performance. The company's interest cost has grown by 115.82% in the last nine months, while the net sales have fallen by 41.7% compared to the average of the previous four quarters. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The company's operating cash flow has also been falling each year in the last three years, indicating a decline in cash revenues from business operations. The net sales and operating profit (PBDIT) for the quarter were the lowest in the last five quarters, showing a negative trend. The profit before tax (PBT) and profit after tax (PAT) also saw a decline, with the non-operating income being 83.44% of the PBT.

Overall, the financial results for Generic Engineering Construction & Projects for the quarter ended September 2023 have been negative, with declining sales and profits. The company's high reliance on non-operating income is not a sustainable business model, and the stock call by MarketsMOJO is 'Strong Sell'.