Divyashakti's Q1 FY25 Financial Report Shows Mixed Results, Highlighting Concerning Trends

Divyashakti, a microcap company in the ceramics and allied industry, recently announced its financial results for the quarter ending March 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Divyashakti’s performance for the quarter has been flat, with a score of -1 compared to 5 in the previous 3 months. However, there are some positive aspects to the company’s financials. The profit after tax (PAT) for the half-yearly period is higher at Rs 0.72 crore compared to the preceding 12-month period of Rs 0.29 crore. This indicates that the company has already surpassed its PAT for the previous year in just six months.

On the other hand, there are some concerning factors in Divyashakti’s financials. The net sales for the quarter have fallen by -38.5% to Rs 10.73 crore compared to the average net sales of the previous four quarters, which were Rs 17.44 crore. This shows a negative trend in the company’s sales performance. Additionally, the operating profit (PBDIT) for the quarter is at its lowest in the last five quarters at Rs 0.13 crore, indicating a negative trend in the company’s operating efficiency. The operating profit margin for the quarter is also at its lowest in the last five quarters at 1.21%, further highlighting a decline in the company’s efficiency.

Moreover, the profit before tax less other income (PBT) for the quarter is at its lowest in the last five quarters at Rs -0.54 crore, showing a negative trend in the company’s profitability. The earnings per share (EPS) for the quarter are also at their lowest in the last five quarters at Rs 0.24, indicating a decline in the company’s profitability and lower earnings for shareholders.

Overall, Divyashakti’s financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.