NR Agarwal Industries Reports Negative Financial Results for Q1 2024
NR Agarwal Industries, a microcap company in the paper and paper products industry, reported a negative financial performance for the quarter ending March 2024. While the company has shown consistent growth in operating cash flow, there are concerns regarding declining profit and increasing interest costs. Investors are advised to carefully evaluate these factors before investing.
NR Agarwal Industries, a microcap company in the paper and paper products industry, recently announced its financial results for the quarter ending March 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for NR Agarwal Industries is 'Sell'.
The company's financial performance for the quarter has been very negative, with a score of -31 compared to -15 in the previous quarter. However, there are some positive aspects to the company's financials. NR Agarwal Industries has shown a consistent growth in its operating cash flow, with the highest amount of Rs 135.14 crore in the last three years.
On the other hand, there are some areas of concern for the company. The profit before tax less other income (PBT) for the quarter has fallen by 104.7% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a significant decline of 89.2% compared to the average PAT of the previous four quarters. The interest cost for the quarter has increased by 156.59%, indicating a rise in borrowings. The company's ability to manage interest payments has also deteriorated, with the lowest operating profit to interest ratio in the last five quarters.
The company's sales for the half-year have also seen a negative trend, with a decline of 21.30% year on year. The operating profit margin for the quarter is at its lowest in the last five quarters, indicating a decline in efficiency. The non-operating income for the quarter is 125.72% of the PBT, which suggests that the company's income from non-business activities is high and may not be sustainable in the long run.
The earnings per share for the quarter are at its lowest in the last five quarters, indicating a decline in profitability and lower returns for shareholders. The non-operating income for the quarter is also at its highest in the last five quarters, which may not be sustainable.
Overall, NR Agarwal Industries has shown a very negative financial performance for the quarter ending March 2024. Investors are advised to carefully consider these factors before making any investment decisions.
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