Kalyani Steels' Quarterly Net Profit Margin Hits 5-Quarter Low, Operating Efficiency Declines

May 10 2024 03:25 PM IST
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Kalyani Steels, a smallcap company in the iron and steel industry, reported a flat performance in the quarter ending March 2024 with a score of 3 out of 10. The company has shown strong ability to manage interest payments and a growth in profit after tax, but also a decrease in operating and net profit margins. MarketsMojo has given a 'Hold' call for the company's stock.
Net Profit Margin - Quarterly: Lowest at 12.91% in the last five quarters.Company's profitability has decreased.

Kalyani Steels, a smallcap company in the iron and steel industry, recently announced its financial results for the quarter ending March 2024. According to the data, the company's performance has remained flat compared to the previous quarter, with a score of 3 out of 10.

However, there are some positive aspects to note from the financial report. Kalyani Steels has shown a strong ability to manage interest payments, with an operating profit to interest ratio of 25.96 times in the last five quarters. Additionally, the company's profit after tax has grown by 29.85% year on year, reaching Rs 186.20 crore in the nine-month period. The net sales for the quarter also saw a positive trend, reaching a high of Rs 502.83 crore.

On the other hand, there are some areas of concern for Kalyani Steels. The operating profit for the quarter was at its lowest in the last five quarters, at Rs 90.08 crore. The operating profit margin and net profit margin have also decreased, indicating a decline in the company's efficiency and profitability.

MarketsMOJO has given a 'Hold' call for Kalyani Steels' stock, based on the financial performance of the quarter. Investors should carefully consider these factors before making any decisions regarding the company's stock.
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