Bharat Road Network's Q1 FY25 Financial Report Shows Mixed Results

Bharat Road Network, a microcap engineering company, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Bharat Road’s performance for the quarter has remained flat, with a score of -5 compared to 0 in the previous three months. However, there are some positive aspects to the company’s financials.

One of the highlights is the Debtors Turnover Ratio, which has been consistently growing in the last five half-yearly periods and is currently at a high of 774.94 times. This indicates that the company has been able to collect payments from its debtors at a faster rate.

In terms of net sales, Bharat Road has recorded its highest figure of Rs 103.06 crore in the last five quarters, showing a positive trend in the near term.

However, there are some areas of concern for the company. The Profit Before Tax (PBT) has fallen by 57.47% year on year, with a quarterly figure of Rs -17.70 crore. The Profit After Tax (PAT) has also seen a decline of 32.0% year on year, with a quarterly figure of Rs -15.55 crore. This indicates a negative trend in the near term for both PBT and PAT.

Another red flag is the Debt-Equity Ratio, which has been consistently increasing in the last five half-yearly periods and is currently at a high of 6.99 times. This suggests that the company is relying heavily on borrowing to fund its operations, which could potentially lead to a strained liquidity situation.

Overall, Bharat Road Network’s financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.