Suryalata Spinning Mills Reports Negative Financial Performance in Q1 FY25

Suryalata Spinning Mills, a microcap textile company, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Suryalata Spinning Mills is ‘Sell’. The company has seen a very negative financial performance in the quarter, with a score of -23, a significant decrease from -10 in the previous quarter.

Despite the negative performance, there are some positive aspects to note from the financial results. Suryalata Spinning Mills has a high Dividend Payout Ratio (DPR) of 7.15%, indicating that the company is distributing a higher proportion of its profits as dividends to shareholders. This has been consistent over the past five years.

However, there are also some concerning factors in the financial results. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by 67.1% compared to the average of the previous four quarters. The Profit After Tax (PAT) has also decreased by 57.3% compared to the average of the previous four quarters. This indicates a very negative trend in the near term for the company’s profitability.

Other areas of concern include the company’s ability to manage interest payments, as seen by the lowest Operating Profit to Interest ratio in the last five quarters. The company’s operating cash flow has also decreased, and interest costs have risen, indicating increased borrowings.

The Operating Profit (PBDIT) for the quarter is at its lowest in the last five quarters, and the Operating Profit Margin has also decreased, showing a decline in the company’s efficiency. The Profit Before Tax less Other Income (PBT) is also at its lowest in the last five quarters, indicating a negative trend in the near term.

Lastly, the Earnings per Share (EPS) for the quarter is at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

Overall, Suryalata Spinning Mills has seen a negative financial performance in the quarter ending June 2024. Investors should carefully consider these factors before making any investment decisions.