Sakthi Finance Reports Mixed Results for Q3, Highest Net Sales in 5 Quarters

Sakthi Finance, a microcap finance company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Sakthi Finance's performance for the quarter was flat, with a score of -2 compared to 2 in the previous quarter. However, there are some positive aspects to the company's financials. The net sales for the quarter were the highest in the last five quarters at Rs 54.29 crore, and the near-term sales trend is positive. The operating profit for the quarter was also the highest in the last five quarters at Rs 37.76 crore, and the near-term trend is positive as well. Additionally, the company has been distributing higher dividends to its shareholders from the profits generated.

On the other hand, there are some areas of concern for Sakthi Finance. The operating cash flow for the year was the lowest in the last three years at Rs -27.99 crore, and it has been falling each year. This indicates that the company's cash revenues from business operations are declining. The earnings per share for the quarter were also the lowest in the last five quarters at Rs 0.55, showing a decline in profitability. Furthermore, the dividend payout ratio for the year was the lowest in the last five years at 32.96%, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Sakthi Finance's financial performance for the quarter has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.