Avadh Sugar & Energy Reports Negative Financial Results for Q1 FY25

Avadh Sugar & Energy, a smallcap company in the sugar industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financials, Avadh Sugar has seen a very negative performance in the quarter, with a score of -25 compared to -13 in the previous quarter. However, there are some positive aspects to the company’s performance. The Debtors Turnover Ratio for the half yearly period is at its highest in the last five periods, indicating that the company has been able to settle its debtors faster.

On the other hand, there are some concerning factors in the financials as well. The Profit Before Tax (PBT) has fallen by -60.96% year on year, and the Profit After Tax (PAT) has also decreased by -60.8% year on year. The interest cost has increased by 29.03% quarter on quarter, indicating increased borrowings. The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters.

The company’s operating cash flow has also been declining, with the lowest figure in the last three years. The Operating Profit (PBDIT) for the quarter is also at its lowest in the last five quarters, and the Operating Profit Margin has also decreased. The Earnings per Share (EPS) for the quarter is at its lowest in the last five quarters, indicating declining profitability.

In terms of liquidity, the company’s cash and cash equivalents for the half yearly period are at its lowest in the last six periods, indicating a deteriorating short-term liquidity situation. Overall, the financial performance of Avadh Sugar & Energy for the quarter ending June 2024 has been negative, with some concerning factors that investors should take note of.