Gillanders Arbuthnot & Company Reports Significant Decline in Financial Performance

Gillanders Arbuthnot & Company, a diversified microcap company, has recently announced its financial results for the quarter ending December 2023. According to the data released on February 12, 2024, the company has seen a significant decline in its financial performance, with a score of -20 compared to -8 in the previous quarter.

The company's profit before tax (PBT) has fallen by 238.2% to Rs -31.13 crore, which is significantly lower than the average PBT of the previous four quarters at Rs -9.21 crore. Similarly, the profit after tax (PAT) has also seen a sharp decline of 664.8% to Rs -22.35 crore, compared to the average PAT of Rs -2.92 crore in the previous four quarters.

The company's operating profit to interest ratio has reached its lowest point in the last five quarters at -6.18 times, indicating a deteriorating ability to manage interest payments. The net sales for the nine-month period have also shown a negative trend, with a decline of 20.74% year on year.

In terms of operating profit, Gillanders Arbuthnot has recorded its lowest figure of Rs -24.33 crore in the last five quarters, while the operating profit margin has also reached its lowest point at -23.99%. This indicates a decline in the company's efficiency.

The earnings per share (EPS) for the quarter have also shown a downward trend, with the lowest figure of Rs -10.47 in the last five quarters. The company's short-term liquidity has also deteriorated, with the lowest cash and cash equivalents figure of Rs 2.33 crore in the last six half-yearly periods.

It is worth noting that the company's non-operating income has increased to its highest point of Rs 8.25 crore in the last five quarters. However, this may not be sustainable in the long run.

Based on these financial results, MarketsMOJO has given a 'Strong Sell' call for Gillanders Arbuthnot & Company's stock. Investors are advised to carefully consider these factors before making any investment decisions.