Lykis Announces Q1 FY25 Financial Results, Receives 'Sell' Call from MarketsMOJO

Lykis, a microcap company in the tea/coffee industry, recently announced its financial results for the quarter ending June 2024. The results, declared on July 30, have received a ‘Sell’ call from MarketsMOJO.

Despite a flat performance in the quarter, there are some positive aspects to note. The company’s operating cash flow has been consistently growing over the last three years, with the highest annual amount of Rs 66.32 crore. Additionally, the debt-equity ratio has been decreasing over the last five half-yearly periods, indicating a reduction in borrowing compared to equity capital.

However, there are also some concerning factors in the financials. The net sales for the quarter were at Rs 72.84 crore, a significant decrease of 27.9% compared to the average net sales of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) for the quarter was at Rs 0.82 crore, a decrease of 15.5% compared to the average PAT of the previous four quarters. The net sales for the quarter were also the lowest in the last five quarters, indicating a negative trend in the near term.

Overall, Lykis has shown mixed results in the quarter ending June 2024. While there are some positive aspects to note, the company’s net sales and PAT have seen a decline, leading to a ‘Sell’ call from MarketsMOJO. Investors should carefully consider these factors before making any decisions regarding their investments in Lykis.