AVT Natural Products' Q1 2024 Financial Results: A Mixed Bag of Positive and Negative Trends.

AVT Natural Products, a smallcap company in the refined oil and vanaspati industry, recently announced its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for AVT Natural Products is 'Sell'.

The company's financial performance for the quarter has been negative, with a score of -12 compared to -11 in the previous quarter. However, there are some positive aspects to AVT Natural Products' financials. The company has shown a strong operating cash flow of Rs 104.96 crore annually in the last three years, indicating higher revenues from business operations. Additionally, the dividend payout ratio (DPR) has been the highest at 26.27% in the last five years, showing that the company is distributing a higher proportion of profits as dividends.

On the other hand, there are some areas of concern for AVT Natural Products based on its June 2024 financials. The profit before tax less other income (PBT) for the quarter has fallen by -57.40% year on year (YoY) to Rs 3.05 crore, indicating a negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by -28.6% YoY to Rs 5.96 crore, showing a negative trend in the near term. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest at 5.76 times in the last five quarters. The operating profit (PBDIT) for the quarter has also been the lowest at Rs 7.84 crore in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased to 7.50%, indicating a decline in the company's efficiency. The non-operating income for the quarter is 61.49% of the PBT, which is a cause for concern as it shows a high income from non-business activities, which may not be sustainable in the long run. Lastly, the earnings per share (EPS) for the quarter have been the lowest at Rs 0.39 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

Overall, AVT Natural Products has shown a mixed financial performance for the quarter ending June 2024. While there are some positive aspects, there are also areas of concern that the company needs to address in order to improve its financials and regain investor confidence.