Goa Carbon's Q1 Financial Results Show Significant Decline in Sales and Profitability

Goa Carbon, a microcap company in the carbon black industry, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock call for Goa Carbon is 'Hold'. However, the company's financial performance for the quarter has been very negative, with a score of -25 compared to -16 in the previous quarter. This decline can be attributed to various factors. One of the major concerns is the decrease in net sales, which fell by -51.7% to Rs 127.80 crore compared to the average net sales of the previous four quarters at Rs 264.33 crore. This indicates a very negative trend in the company's sales. Similarly, the profit before tax less other income (PBT) also saw a significant decline of -97.4% to Rs 0.66 crore compared to the average PBT of the previous four quarters at Rs 25.39 crore. The same trend can be seen in the profit after tax (PAT), which fell by -86.1% to Rs 2.98 crore compared to the average PAT of Rs 21.38 crore. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters at 1.26 times. Additionally, the operating profit (PBDIT) and operating profit margin have also seen a decline, indicating a decrease in the company's efficiency. Furthermore, the non-operating income for the quarter was 84.29% of the PBT, which suggests that the company's income from non-business activities is high and not sustainable in the long run. Lastly, the earnings per share (EPS) for the quarter were the lowest in the last five quarters at Rs 3.26, indicating a decline in profitability and lower earnings for shareholders. Overall, the financial results for the quarter ending June 2024 have not been favorable for Goa Carbon. Investors are advised to hold their stock and closely monitor the company's performance in the upcoming quarters.