Olympia Industries Reports Positive Growth in Q1 Results, But Rising Debt Could Impact Profitability

This could lead to higher debt burden and impact profitability in the long run.
Olympia Industries, a microcap trading company, has recently announced its financial results for the quarter ending March 2024. The company has shown positive growth in its financial performance, with a score of 13 out of 100, compared to 0 in the previous quarter.

One of the key factors contributing to this growth is the increase in net sales, which has grown by 58.6% to Rs 74.98 crore in the quarter, compared to the average net sales of the previous four quarters at Rs 47.27 crore. This indicates a strong sales trend in the near term for the company.

Another positive aspect is the operating profit (PBDIT), which has been the highest in the last five quarters at Rs 1.79 crore and has shown growth in each quarter. This reflects a positive trend in the near term for the company's operating profit.

The company's profit before tax (PBT) less other income has also been the highest in the last five quarters at Rs 0.30 crore, indicating a positive trend in the near term. Similarly, the profit after tax (PAT) has also been the highest at Rs 0.29 crore in the last five quarters, showing a positive trend in the near term for the company's profitability.

However, one area of concern for Olympia Industries is the rising interest cost, which has increased by 13.39% in the last quarter to Rs 1.27 crore. This could potentially impact the company's profitability in the long run due to increased borrowings and higher debt burden.

Overall, Olympia Industries has shown a positive financial performance in the quarter ending March 2024, with an increase in net sales, operating profit, PBT, PAT, and EPS. Investors should keep an eye on the company's interest cost and its impact on profitability in the future. MarketsMOJO has given a 'Sell' call for the company's stock based on its financial performance.