KM Sugar Mills Reports Negative Performance in Q3, with Some Positive Aspects

KM Sugar Mills, a microcap company in the sugar industry, recently declared its financial results for the quarter ending September 2024. According to the report, the company has seen a negative performance in this quarter, with a score of -15, which has improved from -19 in the last three months.

Despite the negative performance, there are some positive aspects to KM Sugar Mills' financials. The company's net sales for the quarter were the highest in the last five quarters, at Rs 170.49 crore. The near-term sales trend is also positive, indicating potential growth in the future.

However, there are also some areas that are not performing well for KM Sugar Mills. The profit before tax (PBT) less other income for the quarter was at Rs 4.20 crore, which is a decrease of 25% compared to the same period last year. The near-term trend for PBT is also negative. Additionally, the company's interest costs have increased by 50.35% over the previous half-yearly period, indicating higher borrowings.

The operating profit to interest ratio for the quarter was the lowest in the last five quarters, at 2.84 times. This suggests that the company's ability to manage its interest payments is deteriorating. The profit after tax (PAT) for the quarter was at Rs 4.84 crore, a decrease of 12.8% compared to the same period last year. The near-term trend for PAT is also negative.

In terms of dividends, KM Sugar Mills has distributed the lowest dividend per share (DPS) in the last five years, at Rs 0.00. This is lower than the previous years, indicating a decrease in profits. The dividend payout ratio (DPR) for the company is also at its lowest in the last five years, at 0.00%. This means that the company is distributing a lower proportion of its profits as dividends.

Overall, KM Sugar Mills' financial performance for the quarter ending September 2024 has been negative, with some positive and negative trends. Investors should take note of these factors before making any investment decisions. MarketsMOJO has given a 'Sell' call for the company's stock based on these financials.