Axel Polymers reports strong sales growth in Q1 FY25, but profits show decline

Axel Polymers, a microcap company in the plastic products industry, has recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for the company is ‘Hold’.

According to the financials, Axel Polymers has shown positive performance in the quarter, with a score of 6 out of 10, compared to 9 in the previous quarter. The company’s net sales for the quarter have grown by 63.66% year on year, reaching Rs 42.24 crore. This indicates a very positive sales trend in the near term.

One of the key factors contributing to the company’s success is its inventory turnover ratio, which has been consistently growing in the last five half-yearly periods and is currently at its highest at 3.35 times. This shows that Axel Polymers has been able to sell its inventory at a faster rate. Additionally, the company’s net sales for the quarter have also reached its highest at Rs 42.24 crore in the last five quarters, indicating a positive sales trend in the near term.

However, there are some areas where Axel Polymers needs to improve. The company’s profit before tax less other income (PBT) for the quarter has fallen by -191.80% year on year, reaching Rs -0.56 crore. This shows a very negative trend in the near term. The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, at Rs 0.31 crore, indicating a negative trend in the near term. The company’s operating profit margin has also deteriorated, reaching its lowest at 0.73% in the last five quarters.

In conclusion, Axel Polymers has shown positive financial performance in the quarter ending June 2024, with a strong growth in net sales and inventory turnover ratio. However, there are some areas where the company needs to improve, such as its PBT and operating profit. Investors are advised to hold their stock in Axel Polymers, as recommended by MarketsMOJO.