Kabra Extrusion Technik's Q1 FY25 financials show mixed results, with areas of concern.

Kabra Extrusion Technik, a smallcap company in the engineering and industrial equipment industry, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, Kabra Extrusion has seen a negative performance in the quarter, with a score of -16 compared to 5 in the previous quarter. However, there are some positive aspects to the company’s performance. The operating cash flow for the year has been the highest at Rs 32.26 crore and has grown consistently over the past three years. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas of concern for Kabra Extrusion. The net sales for the quarter have fallen by -34.00% year on year, indicating a negative trend in the near term. The profit before tax less other income (PBT) has also seen a significant decline of -81.55% year on year, and the profit after tax (PAT) has fallen by -65.2% year on year. This shows a negative trend in the near term for both PBT and PAT.

The company’s dividend payout ratio (DPR) has also been consistently decreasing over the past five years, with the current ratio at 31.03%. This means that the company is distributing a lower proportion of its profits as dividends to shareholders.

In terms of sales and profitability, Kabra Extrusion has seen a decline in the last five quarters. The net sales for the quarter have been the lowest at Rs 88.20 crore, and the PBT has also been the lowest at Rs 1.19 crore. The non-operating income for the quarter is also high, at 58.25% of the PBT, indicating that the company’s income from non-business activities is not sustainable in the long run.

The earnings per share (EPS) for the quarter have also been the lowest in the last five quarters, at Rs 0.57. This shows a declining profitability trend and lower earnings for shareholders.

Overall, Kabra Extrusion Technik’s financial performance for the quarter ending June 2024 has been negative, with some positive aspects and areas of concern. Investors are advised to hold their stock and monitor the company’s performance in the coming quarters.