SMS Lifesciences India Reports Strong Financial Performance in Q1 2024

SMS Lifesciences India, a microcap pharmaceutical company, has recently declared its financial results for the quarter ended March 2024. The company has shown a very positive performance in this quarter, with a significant improvement in its financial score from -19 to 21 in the last three months.

One of the key highlights of the quarter is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 294.26% year on year. This trend is expected to continue in the near term. Similarly, the Profit After Tax (PAT) has also shown a remarkable growth of 1604.7% year on year. The company's Net Sales have also increased by 41.21% year on year, indicating a positive sales trend in the near term.

SMS Lifesciences has also shown a strong ability to manage its interest payments, with an Operating Profit to Interest ratio of 4.00 times, the highest in the last five quarters. The Operating Profit (PBDIT) has also been consistently growing in the last five quarters, with the highest at Rs 11.36 crore in this quarter. The company's Net Sales have also been consistently increasing, with the highest at Rs 89.99 crore in this quarter.

On the other hand, the company's interest cost has increased by 21.37% quarter on quarter, indicating a rise in borrowings. Additionally, the Non Operating Income is 33.24% of the Profit Before Tax, which is a cause for concern as it signifies a high income from non-business activities.

Overall, SMS Lifesciences India has shown a positive financial performance in the quarter ended March 2024. The company's profitability has increased, and it has created higher earnings for its shareholders. However, the high non-operating income and rising interest cost should be monitored closely. Based on the financial results, MarketsMOJO has given a 'Hold' call for the company's stock.