Jayaswal Neco Industries Reports Decline in Financial Performance for Q1 FY25

Jayaswal Neco Industries, a smallcap company in the iron and steel industry, recently announced its financial results for the quarter ending March 2024. The stock call by MarketsMOJO for the company is ‘Sell’.

According to the financial report, the company has seen a negative performance in the quarter, with a score of -19 compared to -5 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 -223.29% year on year, reaching Rs -45.58 crore. The trend for PBT in the near term is also negative. Similarly, the Profit After Tax (PAT) has also fallen by -213.1% year on year, reaching Rs -31.68 crore. This trend is also expected to continue in the near term.

The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio at its lowest in the last five quarters. The interest cost has also increased by 28.91% over the previous half-year period, indicating increased borrowings.

The Operating Profit (PBDIT) for the quarter is at its lowest in the last five quarters, and the Operating Profit Margin has also decreased to its lowest at 11.47%. This shows a decline in the company’s efficiency.

Overall, the company’s profitability has declined, with the lowest Earnings per Share (EPS) of Rs -0.33 in the last five quarters. This indicates that the company has created lower earnings for its shareholders.

In conclusion, based on the financial results for the quarter ending March 2024, Jayaswal Neco Industries is facing challenges in terms of profitability and efficiency. Investors are advised to take note of these factors before making any investment decisions.