Hariyana Ship Breakers Reports Strong Sales Growth, But Concerns Over Profitability Remain

Hariyana Ship Breakers, a microcap trading company, recently declared its financial results for the quarter ending March 2024. According to the report, the company's net sales have shown a significant growth of 97.41% year on year, reaching Rs 92.17 crore. This positive sales trend is a promising sign for the company's future performance.

The company's profit after tax (PAT) has also seen a growth of 55.45% year on year, reaching Rs 6.70 crore. This is higher than the previous 12-month period, indicating a strong financial performance in the nine-month period. However, the profit before tax (PBT) has fallen by -530.0% compared to the average of the previous four quarters, which is a cause for concern.

One of the factors contributing to the decline in PBT is the company's operating profit margin, which is at its lowest in the last five quarters. This indicates a decrease in efficiency and could potentially impact the company's profitability in the near term.

Another concerning aspect is the company's non-operating income, which is 1,818.18% of the PBT. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Hariyana Ship. However, it is important to note that these results are for the quarter ending March 2024 and may not reflect the company's current performance. Investors are advised to do their own research and analysis before making any investment decisions.