Goodyear India's Q1 FY25 Financial Results Show Negative Performance Across Key Indicators

Goodyear India, a smallcap company in the tyre industry, recently announced its financial results for the quarter ending June 2024. The stock call by MarketsMOJO for Goodyear India is ‘Sell’.

According to the financials, the company has seen a very negative performance in the quarter, with a score of -24 compared to -12 in the previous quarter. This indicates a decline in the company’s financial health.

One of the major factors contributing to this decline is the Profit Before Tax (PBT) less Other Income, which has fallen by 122.3% from the average of the previous four quarters. The Profit After Tax (PAT) has also seen a decline of 112.7% from the average of the previous four quarters. This trend is expected to continue in the near term.

The company’s net sales have also taken a hit, with a decline of 17.0% from the average of the previous four quarters. This is the lowest net sales in the last five quarters, indicating a negative trend in the company’s sales performance.

The operating profit (PBDIT) has also seen a decline, with the lowest figure of Rs 5.38 crore in the last five quarters. This is a cause for concern as it shows a negative trend in the company’s operating efficiency.

The operating profit margin has also hit a low of 0.98%, indicating a deterioration in the company’s efficiency. The PBT has also seen a decline, with the lowest figure of Rs -9.06 crore in the last five quarters.

The earnings per share (EPS) have also taken a hit, with the lowest figure of Rs -1.82 in the last five quarters. This shows a decline in the company’s profitability and lower earnings for shareholders.

In terms of liquidity, the company’s cash and cash equivalents have also seen a decline, with the lowest figure of Rs 123.66 crore in the last six half-yearly periods. This indicates a deteriorating short-term liquidity for the company.

Overall, the financial results for the quarter ending June 2024 for Goodyear India have been negative, with a decline in various key financial indicators. Investors are advised to take note of these factors before making any investment decisions.