Cords Cable Industries reports mixed Q3 results

Cords Cable Industries, a microcap company in the cable industry, has recently declared its financial results for the quarter ended September 2023. According to the data released on October 27, 2023, the company's net sales have shown a growth of 7.44% quarter-on-quarter (QoQ) compared to a decline of 4.73% in the previous quarter. The standalone net profit has also increased by 10.27% QoQ, as opposed to a decrease of 12.74% in the previous quarter. However, the company's operating profit (PBDIT) excluding other income has shown a decline of 10.47% QoQ, and the interest expenses have increased by 8.74% QoQ. This has resulted in a decrease in the operating profit margin (excluding other income) from the previous quarter. Despite the flat financial performance, Cords Cable has some positive aspects to its financials. The company has shown a consistent growth in its inventory turnover ratio, with the highest being 9.59 times in the last five half-yearly periods. The net sales for the quarter have also been the highest in the last five quarters, indicating a positive sales trend in the near term. Additionally, the company's cash and cash equivalents have also shown improvement in the last six half-yearly periods. On the other hand, there are some areas of concern for Cords Cable. The profit before tax (PBT) less other income has shown a significant decline of 90.73% year-on-year (YoY), and the operating profit to interest ratio has also decreased to its lowest in the last five quarters. The company's operating profit and profit before tax have also shown a negative trend in the near term. Moreover, the non-operating income is a major contributor to the company's PBT, which may not be a sustainable business model. Overall, Cords Cable's financial performance for the quarter ended September 2023 has been mixed, with some positive and negative aspects. Investors are advised to hold their stock, as recommended by MarketsMOJO, and keep a close eye on the company's future financial results.