Den Networks Reports Negative Financial Performance in Q1 FY 25, Advises Hold on Stock

Den Networks, a smallcap company in the DTH/Cable industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Den Networks has seen a negative performance in the quarter, with a score of -8 compared to -1 in the previous 3 months. This indicates a decline in the company’s overall financial health.

One of the major factors contributing to this decline is the Profit After Tax (PAT), which has fallen by 15.2% to Rs 45.52 crore compared to the average PAT of the previous four quarters at Rs 53.66 crore. This trend is expected to continue in the near term.

The company’s Net Sales for the quarter also saw a decline, with the lowest figure of Rs 247.53 crore in the last five quarters. This is a decrease of 8.4% compared to the average Net Sales of the previous four quarters at Rs 270.19 crore. The near term trend for Net Sales is also negative.

In terms of Operating Profit (PBDIT), Den Networks recorded its lowest figure in the last five quarters at Rs 28.15 crore. This indicates a negative trend in the near term for the company’s operating profit.

Another concerning aspect of the financials is the high Non Operating Income, which accounts for 99.51% of the Profit Before Tax (PBT). This suggests that the company’s income from non-business activities is high, which may not be a sustainable business model. The Non Operating Income for the quarter was also the highest in the last five quarters at Rs 55.20 crore.

Overall, Den Networks has reported a negative financial performance for the quarter ending June 2024. Investors are advised to hold their stock and closely monitor the company’s future financial results.