Suryalakshmi Cotton Mills Reports Sharp Decline in Financial Performance for Q1 FY25

Suryalakshmi Cotton Mills, a microcap company in the textile industry, recently announced its financial results for the quarter ending in June 2024. However, the news is not positive as the company has seen a significant decline in its financial performance.

According to MarketsMOJO, a leading stock analysis platform, the stock call for Suryalakshmi Cotton Mills is ‘Sell’. This is based on the company’s financials for the quarter, which have shown a sharp decline in key areas.

One of the major concerns is the Profit Before Tax (PBT) less Other Income, which has fallen by 158% compared to the average of the previous four quarters. This is a clear indication of the company’s deteriorating near-term PBT trend.

Similarly, the Profit After Tax (PAT) has also seen a decline of 67.1% compared to the average of the previous four quarters. The company’s Net Sales have also fallen by 18.8% compared to the average of the previous four quarters, indicating a negative sales trend in the near term.

Another worrying factor is the company’s ability to manage interest payments, as seen in the Operating Profit to Interest ratio, which is at its lowest in the last five quarters. Additionally, the company’s cash revenues from business operations have also been falling, with the Operating Cash Flow at its lowest in the last three years.

The company’s sales trend is also negative, with the Net Sales at its lowest in the last five quarters. The PBT less Other Income is also at its lowest in the last five quarters, further highlighting the negative near-term trend.

Moreover, the company’s Non Operating Income is 267.86% of the Profit Before Tax, indicating a high income from non-business activities, which is not a sustainable business model. Lastly, the Earnings per Share (EPS) is at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

In conclusion, Suryalakshmi Cotton Mills has reported a very negative financial performance for the quarter ending in June 2024. Investors are advised to carefully consider these factors before making any investment decisions.