G R Infraprojects Reports Negative Financial Performance in Q3

G R Infraprojects, a midcap company in the capital goods industry, recently declared its financial results for the quarter ended September 2023. The stock call by MarketsMOJO is 'Sell'.

According to the quarterly analysis, the company has seen a negative growth in net sales and consolidated net profit, with a decline of 24.03% and 29.91% respectively compared to the previous quarter. The operating profit (PBDIT) excluding other income has also decreased by 23.10%. However, there has been a slight improvement in the operating profit margin (excluding other income) compared to the previous quarter.

The company's financial performance for the quarter has been rated as -14, a significant drop from the previous rating of -7 in the last three months. However, there are some positive aspects to note from the financials. G R Infraprojects has shown a consistent growth in operating cash flow annually, with the highest at Rs 184.41 crore in the last three years.

On the other hand, there are some areas of concern for the company. The profit before tax (PBT) and profit after tax (PAT) for the quarter have both fallen by 40.4% and 36.1% respectively compared to the average of the previous four quarters. The net sales have also decreased by 18.7% compared to the average of the previous four quarters. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The interest cost has increased, indicating a rise in borrowings. The net sales and operating profit (PBDIT) for the quarter are also at their lowest in the last five quarters. The earnings per share (EPS) have also decreased, reflecting a decline in profitability and lower earnings for shareholders.

Overall, G R Infraprojects has shown a negative financial performance for the quarter ended September 2023. Investors should carefully consider these factors before making any investment decisions.