Veejay Lakshmi Engineering Works Reports Decline in Q1 FY25 Financial Results

Veejay Lakshmi Engineering Works, a microcap company in the textile machinery industry, recently announced its financial results for the quarter ending March 2024. The results, declared on August 8, 2024, have received a ‘Sell’ call from MarketsMOJO.

According to the financial report, Veejay Lakshmi Engineering Works has shown a flat performance in the quarter, with a score of -3 compared to 10 in the previous three months. This decline can be attributed to various factors that have affected the company’s financials.

One of the major concerns is the decrease in net sales, which have fallen by 26.6% to Rs 15.99 crore compared to the average net sales of the previous four quarters, which stood at Rs 21.77 crore. This decline in sales is a cause for worry, especially since the near-term sales trend is very negative.

The company’s profit after tax (PAT) has also taken a hit, with a decrease of 50.2% to Rs -1.72 crore compared to the average PAT of the previous four quarters, which was Rs -1.15 crore. This decline in PAT is a reflection of the company’s poor financial performance in the near term.

Moreover, Veejay Lakshmi Engineering Works has also seen a decrease in its debtors turnover ratio, which is at its lowest in the last five half-yearly periods at 19.31 times. This indicates that the company’s pace of settling its debtors has slowed down, which can have a negative impact on its financials.

In conclusion, the financial results for the quarter ending March 2024 have not been favorable for Veejay Lakshmi Engineering Works. The company’s net sales, PAT, and debtors turnover ratio have all shown a decline, which has led to a ‘Sell’ call from MarketsMOJO.