Credo Brands Reports Negative Financial Performance in Q1 2024

Credo Brands, a smallcap retailing company, recently announced its financial results for the quarter ending March 2024. According to the data released on June 5, 2024, the company has seen a negative financial performance with a score of -19, a significant decrease from -7 in the last three months.

The company's profit before tax (PBT) has fallen by 61.4% to Rs 8.43 crore, compared to the average PBT of the previous four quarters which was Rs 21.83 crore. This indicates a very negative trend in the near term. Similarly, the profit after tax (PAT) has also fallen by 61.7% to Rs 7.07 crore, compared to the average PAT of the previous four quarters which was Rs 18.46 crore.

Credo Brands' operating profit to interest ratio has also reached its lowest point in the last five quarters, at 4.83 times. This indicates a deteriorating ability to manage interest payments. The company's interest cost has also risen by 22.72% over the preceding nine months period, indicating increased borrowings.

In terms of sales, the company's net sales for the quarter were Rs 133.08 crore, a decrease of 6.1% compared to the average net sales of the previous four quarters which was Rs 141.76 crore. The operating profit margin has also reached its lowest point in the last five quarters, at 23.24%, indicating a decline in efficiency.

Overall, Credo Brands' financial performance for the quarter ending March 2024 has been negative, with a decrease in profitability and efficiency. The company's stock has been given a 'Sell' call by MarketsMOJO, indicating a cautious approach for investors.