R K Swamy's Q1 FY25 Financial Results Show Negative Trends, Non-Operating Income High

R K Swamy, a smallcap company in the miscellaneous industry, recently declared its financial results for the quarter ending June 2024. According to the data, the company’s performance has remained flat in this quarter, with a score of -5 compared to 15 in the previous three months.

The company’s Profit After Tax (PAT) for the quarter has fallen by 78.1% to Rs 2.18 crore, compared to the average PAT of the previous four quarters which was Rs 9.93 crore. This indicates a negative trend in the near term. Similarly, the company’s Operating Cash Flow has been consistently falling over the last three years, with the latest figure being the lowest at Rs 11.18 crore.

The Net Sales for the quarter have also seen a decline of 17.5% to Rs 68.37 crore, compared to the average Net Sales of the previous four quarters which was Rs 82.88 crore. This indicates a negative trend in the near term. The company’s Operating Profit (PBDIT) for the quarter has also been the lowest in the last five quarters, at Rs 3.91 crore. This shows a negative trend in the near term.

The company’s efficiency has also deteriorated, with the Operating Profit Margin being the lowest at 5.72% in the last five quarters. Additionally, the Profit Before Tax less Other Income (PBT) for the quarter has been the lowest in the last five quarters, at Rs -0.03 crore. This indicates a negative trend in the near term.

It is worth noting that the company’s Non Operating Income for the quarter is 100.97% of the Profit Before Tax (PBT), which means that the company’s income from non-business activities is high. This may not be a sustainable business model in the long run. The Non Operating Income for the quarter has also been the highest in the last five quarters, at Rs 3.12 crore.

Based on these financial results, MarketsMOJO has given a ‘Hold’ call for R K Swamy’s stock. Investors should carefully consider these factors before making any investment decisions.