AWFIS Space Solutions Reports Record High Net Sales and Profit in Q1 FY25

AWFIS Space Solutions, a smallcap company in the miscellaneous industry, recently announced its financial results for the quarter ending June 2024. According to the data released on August 13, 2024, the company’s net sales for the quarter were at an all-time high of Rs 256.88 crore, showing a consistent growth trend in the last five quarters. This indicates a positive near-term sales trend for the company.

The company’s profit after tax (PAT) for the quarter was also at its highest at Rs 2.00 crore, with a growth trend in the last five quarters. This shows a positive near-term trend for the company’s profitability.

In comparison to the average net sales of the previous four quarters, which was at Rs 199.82 crore, the current quarter’s net sales have grown by 28.6%. This further reinforces the positive near-term sales trend for AWFIS Space.

However, there are some areas that the company needs to work on. The interest cost for the quarter was at its highest in the last five quarters, at Rs 28.09 crore, showing an increase of 17.98% from the previous quarter. This indicates that the company has taken on more borrowings, which could have a negative impact on its financials in the long run.

Another concern is the company’s non-operating income, which is at 506.50% of the profit before tax (PBT). This means that a significant portion of the company’s income is coming from non-business activities, which may not be a sustainable business model. The non-operating income for the quarter was also at its highest in the last five quarters, at Rs 10.13 crore.

In conclusion, AWFIS Space Solutions has shown a positive trend in its net sales and profitability in the last five quarters. However, the company needs to address its rising interest cost and reliance on non-business income to ensure sustainable growth in the future. Based on these financials, MarketsMOJO has given a ‘Sell’ call for the company’s stock.