GMM Pfaudler's Financial Performance Declines, MarketsMOJO Gives 'Sell' Call

GMM Pfaudler, a midcap engineering company, recently declared its financial results for the quarter ending March 2024. However, the news is not positive as the company has seen a decline in its financial performance. MarketsMOJO has given a 'Sell' call for the company's stock.

According to the financials, the company's Profit Before Tax (PBT) has fallen by 31.83% year on year, standing at Rs 25.06 crore. This trend is expected to continue in the near term. The Net Sales have also seen a decline of 14.46% year on year, standing at Rs 740.73 crore. The company's interest cost has increased by 30.32% quarter on quarter, indicating increased borrowings.

The company's ability to manage interest payments has deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters at 3.03 times. The Profit After Tax (PAT) has also seen a decline of 12.1% year on year, standing at Rs 31.07 crore. The Net Sales have hit a five-quarter low, and the interest cost has reached a five-quarter high, increasing by 30.32% quarter on quarter.

The Operating Profit (PBDIT) has also hit a five-quarter low at Rs 90.75 crore. The company's near term trend for Operating Profit and PBT is negative. These financials indicate that GMM Pfaudler is facing challenges in its operations, and investors are advised to sell their stock.