AVG Logistics Reports Mixed Results for Q1 FY25, Investors Advised to Hold Stock

AVG Logistics, a microcap logistics company, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, AVG Logistics has seen a negative performance in the quarter, with a score of -12 compared to 15 in the previous quarter. However, there are some positive aspects to the company’s performance based on the June 2024 financials.

The net sales for the quarter were the highest in the last five quarters, at Rs 136.95 crore. The near-term sales trend is also positive for the company. However, there are some areas that need improvement, as seen in the June 2024 financials.

The profit before tax (PBT) less other income has fallen by 84.92% year on year, standing at Rs 4.44 crore. The near-term trend for PBT is very negative. Similarly, the profit after tax (PAT) has also fallen by 58.2% year on year, at Rs 11.68 crore. The near-term trend for PAT is also very negative.

The operating profit margin for the quarter was the lowest in the last five quarters, at 15.52%. This indicates a deterioration in the company’s efficiency. Additionally, the non-operating income for the quarter was 69.59% of the PBT, which is a high percentage. This suggests that the company’s income from non-business activities is not a sustainable business model. The non-operating income for the quarter was also the highest in the last five quarters, at Rs 10.16 crore. This increase in income from non-business activities may not be sustainable for the company.

Overall, AVG Logistics has seen a negative financial performance in the quarter ending March 2024. While there are some positive aspects to the company’s performance, there are also areas that need improvement. Investors are advised to hold their stock and monitor the company’s future financial reports.