Axita Cotton Reports Negative Performance in Q1 FY25 Financial Results

Axita Cotton, a microcap textile company, recently announced its financial results for the quarter ending June 2024. The results, declared on August 9, 2024, have received a ‘Strong Sell’ call from MarketsMOJO.

According to the financial report, Axita Cotton has seen a negative performance in the quarter, with a score of -11, a significant drop from the previous quarter’s score of 4. This decline can be attributed to various factors, including a decrease in net sales, profit after tax, and profit before tax.

The net sales for the quarter were reported at Rs 154.93 crore, a decrease of 43.8% compared to the average net sales of the previous four quarters, which stood at Rs 275.73 crore. This decline in sales is a cause for concern and indicates a negative trend in the near term.

Similarly, the profit after tax (PAT) for the quarter was reported at Rs 3.54 crore, a decrease of 30.4% compared to the average PAT of the previous four quarters, which was Rs 5.09 crore. The profit before tax less other income (PBT) also saw a decline of 15.9%, with the current quarter’s PBT standing at Rs 4.92 crore compared to the average PBT of Rs 5.85 crore in the previous four quarters.

Moreover, the net sales for the quarter were the lowest in the last five quarters, standing at Rs 154.93 crore. This further highlights the negative trend in the company’s sales performance in the near term.

Overall, the financial results for the quarter ending June 2024 have not been favorable for Axita Cotton. The company will need to address the issues affecting its sales and profits to improve its performance in the future.