Andhra Paper's Q1 FY25 Financial Results Show Decline, But Debtors Turnover Ratio Improves

Andhra Paper, a smallcap company in the paper and paper products industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for Andhra Paper is ‘Hold’.

The company’s financial performance for the quarter has been very negative, with a decline in net sales by 33.86% year on year. The trend for near term sales is also negative. However, there are some positive aspects in the financials, such as the Debtors Turnover Ratio, which is at its highest in the last five half yearly periods. This indicates that the company has been able to settle its debtors faster.

On the other hand, the company’s operating profit, profit before tax, and profit after tax have all seen a significant decline year on year. The trend for these metrics is also very negative in the near term. The company’s non-operating income is also high, which is not a sustainable business model.

The earnings per share for the quarter have also decreased, indicating a decline in profitability and lower earnings for shareholders. Additionally, the company’s cash and cash equivalents have also decreased, indicating a deterioration in short term liquidity.

Overall, Andhra Paper’s financial performance for the quarter has been negative, with some positive aspects in terms of debtors turnover ratio. Investors are advised to hold their position in the stock, as per MarketsMOJO’s recommendation.