Goa Carbon's Q4 financial report shows decline in sales and profits

Goa Carbon, a microcap company in the carbon black industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Goa Carbon has seen a negative performance in the quarter, with a score of -16 compared to 11 in the previous three months. This decline can be attributed to various factors, including a significant decrease in net sales, profit before tax, and profit after tax.

The company's net sales for the quarter were at Rs 178.46 crore, which is a decrease of 40.3% compared to the average net sales of the previous four quarters. This decline in sales is a cause for concern and indicates a negative trend in the near term.

Similarly, the profit before tax (PBT) and profit after tax (PAT) have also seen a significant decline of 65.5% and 54.0%, respectively, compared to the average of the previous four quarters. This is a worrying trend for the company and its investors.

Another concerning aspect of the financial report is the increase in interest costs, which have grown by 38.01% quarter on quarter. This signifies that the company has taken on more borrowings, which could have a negative impact on its financial health.

Moreover, the net sales and operating profit (PBDIT) for the quarter were at their lowest in the last five quarters, indicating a negative trend in the company's performance. Additionally, the non-operating income for the quarter was 40.26% of the PBT, which suggests that the company's income from non-business activities is high and not sustainable in the long run.

In conclusion, Goa Carbon's financial results for the quarter ending March 2024 have been disappointing, with a negative trend in various key aspects. Investors are advised to hold their stock and closely monitor the company's performance in the coming quarters.