MIRC Electronics Shows Slight Improvement in Q3

MIRC Electronics, a microcap company in the consumer durables industry, recently declared its financial results for the quarter ended September 2023. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the quarterly analysis, MIRC Electronics has seen a 5.32% growth in net sales compared to the previous quarter, which had a decline of 18.45%. However, the standalone net profit has decreased by 3.38% in the same period. The operating profit (PBDIT) excluding other income has also shown a slight growth of 2.48% compared to a significant decline of 728.21% in the previous quarter. The interest cost has increased by 22.36% in the quarter, but the operating profit margin (excluding other income) has improved from the previous quarter.

Despite the slight improvement in financial performance, MIRC Electronics has seen a very negative trend in the quarter ended September 2023. The company's score has improved from -38 to -25 in the last three months, but there are still some areas that need improvement.

The net sales have fallen by 28.05% compared to the same quarter last year, and the profit before tax (PBT) has also shown a decline of 181.71%. The interest cost has increased by 72.13% in the last nine months, indicating a rise in borrowings. The PBT has been negative for the past five quarters, and the profit after tax (PAT) has also shown a negative trend in the last six months.

Furthermore, the company's operating cash flow has been consistently negative in the last three years, with the lowest being at Rs -8.76 crore. This indicates a decline in cash revenues from business operations.

In conclusion, while MIRC Electronics has shown some improvement in its financial performance in the quarter ended September 2023, there are still some areas that need attention. Investors should carefully consider these factors before making any investment decisions.