GVK Power & Infrastructure's Q4 Results Show Significant Decline in Sales and Profits

GVK Power & Infrastructure, a smallcap company in the power industry, recently declared its financial results for the quarter ending March 2024. However, the results have not been positive, with a score of -28 compared to -6 in the previous quarter.

The company's net sales for the quarter have fallen by 77.1% to Rs 68.70 crore, which is significantly lower than the average net sales of the previous four quarters at Rs 299.42 crore. This indicates a very negative trend in sales for the near future.

Similarly, the profit before tax (PBT) less other income has also seen a significant decline of 365.9% to Rs -158.07 crore, compared to the average PBT of the previous four quarters at Rs 59.45 crore. The profit after tax (PAT) has also fallen by 572.1% to Rs -100.88 crore, which is much lower than the average PAT of Rs 21.37 crore in the previous four quarters.

The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters at 0.23 times. The operating profit (PBDIT) for the quarter is also at its lowest at Rs 30.80 crore, indicating a negative trend in the near term.

The operating profit margin has also decreased to its lowest at 44.83%, showing a decline in the company's efficiency. The earnings per share (EPS) for the quarter is at its lowest at Rs -0.64, indicating a decline in profitability and lower earnings for shareholders.

On a positive note, the company's non-operating income has increased to its highest at Rs 23.55 crore in the last five quarters. However, this may not be sustainable as it is from non-business activities.

MarketsMOJO has given a 'Strong Sell' call for GVK Power & Infrastructure based on its financial performance for the quarter ending March 2024. With declining sales, profits, and efficiency, it is important for the company to take necessary steps to improve its financial performance in the future.