Indian Terrain Fashions Reports Negative Financial Performance in Q1 FY25
Indian Terrain Fashions, a microcap company in the trading industry, recently announced its financial results for the quarter ending March 2024. The stock has been given a ‘Strong Sell’ call by MarketsMOJO.
According to the financials, Indian Terrain has seen a negative performance in the quarter, with a score of -15 compared to -2 in the previous 3 months. However, there are some positive aspects to the company’s financials.
One of the strengths of Indian Terrain is its cash and cash equivalents, which have been the highest in the last six half-yearly periods at Rs 28.84 crore. This shows an improvement in short-term liquidity.
On the other hand, there are some areas that are not working in favor of Indian Terrain. The net sales for the quarter have fallen by -25.92% year on year, indicating a negative trend in sales. The profit before tax less other income has also seen a significant decline of -367.80% year on year, showing a negative trend in the near term.
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 at -2.06 times. The net sales and operating profit have also been the lowest in the last five quarters, indicating a negative trend.
The operating profit margin has also seen a decline, being the lowest at -16.79% in the last five quarters. The profit before tax less other income has also been the lowest in the last five quarters, showing a negative trend in the near term. The earnings per share have also decreased, indicating a decline in profitability and lower earnings for shareholders.
Moreover, the debt-equity ratio has been the highest in the last five half-yearly periods at 0.73 times, indicating that the company is borrowing more to fund its operations. This could potentially lead to a stressed liquidity situation.
Overall, Indian Terrain Fashions has seen a negative financial performance in the quarter ending March 2024. Investors should carefully consider these factors before making any investment decisions.
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