Darshan Orna Reports Strong Sales Growth in Q1 FY25, But Some Areas Need Improvement

Darshan Orna, a microcap company in the jewellery industry, has recently announced its financial results for the quarter ended March 2024. The company has shown a positive performance with a score of 18, which is an improvement from the previous score of 12 in the last three months.

One of the key factors contributing to this positive performance is the significant growth in net sales. In the half-yearly period, the company’s net sales have grown by 206.01% year on year, indicating a strong sales trend. Additionally, the quarterly profit after tax has also shown a growth of 425.0% year on year, with a very positive near-term trend.

Moreover, the company has already surpassed its sales from the previous twelve months in just half a year, with net sales of Rs 20.87 crore compared to Rs 11.87 crore in the preceding 12-month period.

However, there are some areas that need improvement for Darshan Orna. The operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, indicating a negative trend in the near term. Similarly, the profit before tax (PBT) and non-operating income are also at their lowest in the last five quarters, with the latter being 142.75% of the PBT. This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model.

Overall, Darshan Orna has shown a positive financial performance in the quarter ended March 2024, with strong sales growth. However, there are some areas that need improvement, and investors should carefully consider these factors before making any investment decisions.