S.A.L Steel's Q3 Financial Results Show Negative Performance, MarketsMOJO Gives 'Sell' Call

S.A.L Steel, a microcap company in the iron and steel industry, recently announced its financial results for the quarter ending December 2023. According to the data released on February 8, 2024, the company's performance has been negative, with a score of -15 compared to -1 in the previous quarter.

The company's profit before tax (PBT) has fallen by 1006.1% to -Rs 3.33 crore, compared to an average PBT of Rs 0.37 crore in the previous four quarters. This indicates a very negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by 1155.3% to -Rs 2.48 crore, compared to an average PAT of Rs 0.24 crore in the previous four quarters.

The company's operating profit to interest ratio has also reached its lowest point in the last five quarters, at 0.70 times. This suggests a deteriorating ability to manage interest payments. The interest cost has also increased by 23.83% over the preceding nine months period, indicating a rise in borrowings.

The net sales for the quarter have fallen by 8.3% to Rs 129.53 crore, compared to an average net sales of Rs 141.27 crore in the previous four quarters. This shows a negative trend in the company's sales performance in the near term. The operating profit (PBDIT) for the quarter has also reached its lowest point in the last five quarters at Rs 2.27 crore, indicating a negative trend in the near term.

The company's operating profit margin has also reached its lowest point in the last five quarters at 1.75%, indicating a decline in efficiency. The earnings per share (EPS) for the quarter have also decreased to its lowest point in the last five quarters at Rs -0.29, indicating a decline in profitability and lower earnings for shareholders.

Based on these financial results, MarketsMOJO has given a 'Sell' call for S.A.L Steel's stock. The company's performance in the quarter ending December 2023 has been negative, with a decline in key financial indicators. Investors should carefully consider these factors before making any investment decisions.