Intl. Conveyors' Q1 FY25 financial report shows decline in sales and profits.

International Conveyors, a microcap engineering company, recently declared its financial results for the quarter ended June 2024. The company’s stock has been given a ‘Sell’ call by MarketsMOJO.

According to the financial report, Intl. Conveyors has seen a negative performance in the quarter, with a score of -18 compared to -11 in the previous quarter. This decline can be attributed to various factors, as highlighted by the financial data.

One of the major concerns for the company is the decrease in net sales, which have fallen by 33.8% to Rs 25.96 crore in the quarter. This is a significant drop from the average net sales of the previous four quarters, which stood at Rs 39.20 crore. The trend for near term sales is also negative.

Another area of concern is the profit before tax (PBT) less other income, which has fallen by 111.1% to Rs -0.51 crore in the quarter. This is a significant decline from the average PBT of the previous four quarters, which was Rs 4.58 crore. The near term trend for PBT is also negative.

The company’s profit after tax (PAT) has also seen a decline of 62.2% to Rs 6.07 crore in the quarter, compared to the average PAT of the previous four quarters, which was Rs 16.05 crore. The trend for near term PAT is also negative.

Moreover, the company’s interest costs have increased by 40.46% in the nine-month period, indicating a rise in borrowings. The operating profit to interest ratio is also at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments.

The operating profit (PBDIT) for the quarter is also at its lowest in the last five quarters, at Rs 2.09 crore. The operating profit margin is also at its lowest in the last five quarters, indicating a decline in the company’s efficiency.

The non-operating income for the quarter is also high, at 106.67% of the PBT. This suggests that the company’s income from non-business activities is not sustainable in the long run.

Lastly, the earnings per share (EPS) for the quarter is at its lowest in the last five quarters, at Rs 0.96. This indicates a decline in profitability and lower earnings for shareholders.

Overall, Intl. Conveyors has seen a negative financial performance in the quarter ended June 2024. The company will need to address these concerns and work towards improving its financials in the upcoming quarters.