Sterlite Technologies Reports Negative Financial Performance in Q1 FY25

Sterlite Technologies, a midcap company in the cable industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Sterlite Tech. has seen a negative performance in the quarter, with a score of -16, which has improved from -31 in the last three months. However, there are some positive aspects to the company’s financials.

One of the key strengths of Sterlite Tech. is its high operating cash flow, which has been the highest at Rs 791.00 crore in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

On the other hand, there are some areas that are not performing well for Sterlite Tech. The profit before tax (PBT) less other income has fallen by -98.5% over the average PBT of the previous four quarters. Similarly, the profit after tax (PAT) has also fallen by -250.1% over the average PAT of the previous four quarters. This indicates a very negative trend in the near term for the company’s profitability.

In terms of sales, Sterlite Tech. has seen a decline of -11.1% in its net sales in the quarter, compared to the average net sales of the previous four quarters. This is another negative trend for the company.

Additionally, the company’s cash and cash equivalents have also decreased, with the lowest amount of Rs 403.00 crore in the last six half-yearly periods. This indicates a deteriorating short-term liquidity for the company.

Furthermore, Sterlite Tech. has a low dividend payout ratio (DPR) of 0.00% in the last five years, indicating that the company is distributing a lower proportion of its profits as dividends.

Overall, Sterlite Technologies has had a negative financial performance in the quarter ending June 2024. Investors should carefully consider these factors before making any investment decisions.