SPL Industries Reports Positive Trends in Sales and Profit, But Reliance on Non-Business Income Raises Concerns

SPL Industries, a microcap textile company, has recently declared its financial results for the quarter ending March 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, SPL Industries has shown a flat performance in the quarter, with a score of -4, which is an improvement from the previous quarter's score of -30. However, the company has seen positive trends in its net sales and profit after tax (PAT) in the near term.

In terms of net sales, SPL Industries has recorded its highest quarterly sales of Rs 68.62 crore in the last five quarters, with a year-on-year growth of 24.36%. This indicates a positive trend in the company's sales performance. Similarly, the company's PAT has also shown a positive trend, with its highest quarterly profit of Rs 4.26 crore in the last five quarters.

The company's earnings per share (EPS) have also increased, reaching its highest at Rs 1.47 in the last five quarters. This shows that SPL Industries has been able to create higher earnings for its shareholders.

However, the company's non-operating income, which is 60.20% of its profit before tax (PBT), is a cause for concern. This indicates that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model. The company's non-operating income has also increased in the last five quarters, reaching its highest at Rs 3.57 crore.

Overall, SPL Industries has shown a mixed performance in the quarter ending March 2024. While there are positive trends in its sales and profitability, the company's reliance on non-business income may not be sustainable in the long run. Investors are advised to carefully consider these factors before making any investment decisions.