Gujarat Petrosynthese's Q1 FY25 financial report shows mixed results, with strong cash flow but declining sales and profitability

Gujarat Petrosynthese, a microcap company in the petrochemical 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, Gujarat Petrosynthese has shown a flat performance in the quarter, with a slight improvement in its score from -8 to -3 in the last three months. However, there are some positive and negative aspects to the company’s financials.

On the positive side, the company has shown a strong operating cash flow of Rs 1.18 crore annually, which is the highest in the last three years. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, the company’s inventory turnover ratio has been consistently falling in the last five half-yearly periods, with the latest ratio being the lowest at 13.98 times. This suggests that the company’s pace of selling inventory has slowed down. Additionally, the net sales for the nine-month period have decreased by 20.21% year on year, indicating a negative trend in sales.

Furthermore, the company’s earnings per share (EPS) for the quarter have been the lowest in the last five quarters at Rs -0.18. This shows a decline in profitability and lower earnings for shareholders.

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