A-1 Acid Reports Positive Financial Results for Q1 FY25, But Non-Operating Income Raises Concerns

A-1 Acid, a microcap trading company, has recently announced its financial results for the quarter ending June 2024. The company has shown positive performance with a score of 6, a significant improvement from -6 in the last three months.

One of the key highlights of the financial report is the increase in net sales, which reached a high of Rs 70.14 crore in the last five quarters. This is a 36.1% growth compared to the average net sales of the previous four quarters, indicating a positive sales trend in the near term.

The company’s operating profit (PBDIT) has also seen a significant improvement, reaching a high of Rs 0.84 crore in the last five quarters. This shows a positive trend in the company’s efficiency.

A-1 Acid’s profitability has also increased, with the highest profit after tax (PAT) of Rs 0.84 crore in the last five quarters. This has resulted in a higher earnings per share (EPS) of Rs 0.73, indicating a positive trend in the company’s profitability and creating higher earnings for shareholders.

However, the company’s non-operating income is 125.62% of the profit before tax (PBT), which may not be sustainable in the long run. Additionally, the debtors turnover ratio has slowed down, with the lowest ratio of 6.64 times in the last five half-yearly periods.

Overall, A-1 Acid has shown positive financial performance in the quarter ending June 2024, with an increase in net sales, operating profit, and profitability. However, the company needs to address its non-operating income and debtors turnover ratio to ensure sustainable growth in the future. Based on these financials, MarketsMOJO has given a ‘Strong Sell’ call for A-1 Acid’s stock.