Negative Financial Results for Aksh Optifibre in Q1 2024, MarketsMOJO Recommends Strong Sell

Aksh Optifibre, a microcap company in the cable industry, recently declared its financial results for the quarter ending March 2024. According to the latest report, the company's performance has been very negative, with a score of -27, a significant drop from -11 in the last three months.

The company's net sales for the quarter were at Rs 50.29 crore, showing a decline of -36.80% year on year. This indicates a very negative trend in the near term for sales. Similarly, the profit before tax less other income (PBT) for the quarter was at Rs -9.89 crore, a decrease of -626.06% year on year. The profit after tax (PAT) also saw a significant decline of -858.8% year on year, with a value of Rs -1.29 crore.

One of the major concerns for Aksh Optifibre is the rising interest cost, which has increased by 31.36% quarter on quarter, reaching Rs 4.44 crore. This signifies an increase in borrowings by the company. Moreover, the company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest at -0.17 times in the last five quarters.

The company's operating profit (PBDIT) for the quarter was at its lowest in the last five quarters, with a value of Rs -0.76 crore. This indicates a negative trend in the near term for operating profit. The operating profit margin was also at its lowest at -1.51%, showing a decline in the company's efficiency.

Overall, Aksh Optifibre's financial performance for the quarter ending March 2024 has been very negative. The company's sales, profitability, and efficiency have all declined, and the rising interest cost is a cause for concern. Based on these factors, MarketsMOJO has given a stock call of 'Strong Sell' for Aksh Optifibre.