Cosmo First's Financial Results for Q1 2024 Show Negative Trends, Caution Advised for Investors

Cosmo First, a smallcap company in the packaging industry, recently announced its financial results for the quarter ending March 2024. According to the report released on May 15, 2024, the company's performance has been deemed as Very Negative by MarketsMOJO, with a score of -21, showing a slight improvement from the previous quarter's score of -24.

The financials for the quarter have revealed some concerning trends for Cosmo First. The Profit Before Tax less Other Income (PBT) has fallen by -171.3% to Rs -5.73 crore, compared to the average PBT of the previous four quarters, which was Rs 8.03 crore. This indicates a very negative trend in the near term for the company's PBT.

Similarly, the Profit After Tax (PAT) has also seen a decline of -21.8% to Rs 15.38 crore, compared to the average PAT of the previous four quarters, which was Rs 19.66 crore. This shows a very negative trend in the near term for the company's PAT.

The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters at 1.68 times. This is a cause for concern as it signifies increased borrowings for the company. The interest cost has also increased by 15.08% (QoQ), reaching its highest at Rs 26.33 crore in the last five quarters.

Moreover, the PBT less Other Income has been the lowest at Rs -5.73 crore in the last five quarters, indicating a negative trend in the near term. Additionally, the company's Non Operating Income is 132.63% of the PBT, which suggests that the company's income from non-business activities is high and may not be a sustainable business model. The Non Operating Income has also reached its highest at Rs 23.29 crore in the last five quarters.

Overall, the financial results for the quarter ending March 2024 have not been favorable for Cosmo First. The company's performance has been deemed as Very Negative by MarketsMOJO, and the financial trends indicate a negative outlook in the near term. Investors are advised to exercise caution and consider the company's financials before making any investment decisions.