Olectra Greentec's Q1 Financial Results Show Negative Performance and Decline in Profitability

Olectra Greentec, a midcap company in the auto-truck industry, has recently declared its financial results for the quarter ending March 2024. According to the report released on April 25, 2024, the company has seen a very negative performance in this quarter, with a score of -22 compared to 11 in the previous quarter.

One of the major factors contributing to this decline is the decrease in net sales, which have fallen by 23.17% year on year. This trend is expected to continue in the near term, indicating a negative sales trend for the company. Additionally, the company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.

The profit before tax (PBT) and profit after tax (PAT) have also seen a significant decline of 55.57% and 49.2% respectively, compared to the same quarter last year. This indicates a negative trend in the near term for the company's profitability.

Furthermore, the company's interest costs have increased by 54.19% in the last half-yearly period, indicating a rise in borrowings. The operating profit margin has also decreased to its lowest in the last five quarters, showing a decline in the company's efficiency.

The earnings per share (EPS) have also decreased to its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The company's non-operating income has increased, but this may not be sustainable in the long run.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Olectra Greentec's stock. Investors should carefully consider these factors before making any investment decisions.