Kamat Hotels (India) Reports Negative Financial Performance in Q1 2024.

Kamat Hotels (India) has recently announced its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with a score of -18, which has improved from -19 in the last three months.

Despite this, there are some positive aspects to Kamat Hotels' financials. The company's cash and cash equivalents have shown a consistent increase, with the highest amount of Rs 34.32 crore in the last six half-yearly periods. This indicates an improvement in short-term liquidity.

Another positive aspect is the company's debtors turnover ratio, which has been the highest at 34.85 times in the last five half-yearly periods. This shows that Kamat Hotels has been able to settle its debtors faster.

However, there are some areas that are not working in the company's favor. The profit before tax less other income (PBT) for this quarter has fallen by -190.46% year on year, at Rs -2.94 crore. This trend is expected to continue in the near term.

Similarly, the profit after tax (PAT) for this quarter has also fallen by -117.5% year on year, at Rs -0.42 crore. The interest cost for the preceding nine months has also increased by 73.51%, indicating a rise in borrowings.

The operating profit (PBDIT) for this quarter is at its lowest in the last five quarters, at Rs 13.28 crore. The operating profit margin has also decreased to its lowest at 18.00% in the last five quarters, indicating a decline in the company's efficiency.

In conclusion, Kamat Hotels (India) has seen a negative financial performance in the quarter ending June 2024. While there are some positive aspects, such as an increase in cash and cash equivalents and a higher debtors turnover ratio, there are also areas of concern, such as a decrease in PBT and PAT and a rise in interest costs. MarketsMOJO has given a 'Strong Sell' call for the company's stock based on these financials.