Dai-ichi Karkari's Q2 FY25 Financial Report Shows Decline in Profitability and Lower Margins Compared to Peers

Operating Profit Margin (OPM) – Quarterly: Lowest at 0.00% in the last five quarters. Declining profitability; company has lower margins compared to its peers in the industry.

Dai-ichi Karkari, a microcap company in the chemicals industry, recently announced its financial results for the quarter ending September 2024. The company has shown positive performance with a score of 7, an improvement from 2 in the last 3 months.

One of the key highlights of the financial report is the increase in Profit After Tax (PAT) for the half-yearly period, which stands at Rs 0.20 crore compared to the previous 12 months’ PAT of Rs -1.48 crore. This indicates a significant improvement in the company’s profitability, with the half-yearly PAT already surpassing that of the previous year.

Another positive aspect is the company’s net sales for the quarter, which have reached a five-quarter high of Rs 36.75 crore. This shows a positive trend in the company’s sales performance in the near term.

However, there are some areas that need improvement for Dai-ichi Karkari. The company’s Earnings per Share (EPS) for the quarter are at a five-quarter low of Rs -0.31, indicating a decline in profitability and lower earnings for shareholders. Additionally, the Operating Profit Margin (OPM) for the quarter is also at a five-quarter low of 0.00%, highlighting a decline in profitability and lower margins compared to its industry peers.

MarketsMOJO has given a ‘Strong Sell’ call for Dai-ichi Karkari’s stock based on these financial results. Investors should carefully consider these factors before making any investment decisions.