JBM Auto Reports Flat Performance in Q1, Negative Trends in Near Term

JBM Auto, a leading player in the auto ancillary industry, has recently declared its financial results for the quarter ended June 2024. The company has reported a flat performance with a score of 0, a significant decrease from the previous quarter's score of 23.

The company's Profit Before Tax (PBT) has fallen by 36.9% to Rs 35.63 crore compared to the average PBT of the previous four quarters, indicating a negative trend in the near term. Similarly, the Profit After Tax (PAT) has also decreased by 25.3% to Rs 33.40 crore, reflecting a negative trend in the near term.

JBM Auto'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 company's interest cost has also increased by 32.16% over the preceding nine months period, indicating a rise in borrowings.

Moreover, the company's Net Sales for the quarter have fallen by 8.6% to Rs 1,144.50 crore compared to the average Net Sales of the previous four quarters. This reflects a negative trend in the near term. On the other hand, the Non Operating Income has increased to its highest in the last five quarters at Rs 9.40 crore. However, this increase may not be sustainable as it is from non-business activities.

MarketsMOJO has given a 'Hold' call for JBM Auto's stock, considering the company's financial performance for the quarter. With these results, investors may want to closely monitor the company's future performance before making any investment decisions.