Paras Defence Announces Q4 Financial Results: Mixed Performance with Positive Sales and Profit Growth

Paras Defence and Space Technologies, a smallcap company in the defence industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' call by MarketsMOJO.

According to the financials, Paras Defence has seen a negative performance in the quarter, with a score of -12 compared to -11 in the previous quarter. However, there are some positive aspects to the company's performance. The net sales for the quarter were the highest in the last five quarters at Rs 79.69 crore, with a positive trend in the near term. The net sales have also grown by 33.4% over the average of the previous four quarters, indicating a positive trend.

The company's profit after tax (PAT) for the quarter was Rs 9.97 crore, showing a growth of 21.4% over the average of the previous four quarters. This also reflects a positive trend in the near term. However, there are some areas of concern for Paras Defence. The interest cost for the quarter has increased by 49.67% compared to the previous quarter, indicating increased borrowings. The company's ability to manage interest payments has also deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The operating profit margin for the quarter was also the lowest in the last five quarters, indicating a decline in the company's efficiency. The profit before tax (PBT) less other income was also the lowest in the last five quarters, with a negative trend in the near term. The company's non-operating income, which is 45.25% of the PBT, is also a cause for concern as it may not be a sustainable business model. The non-operating income has also increased in the last quarter, which may not be sustainable.

Overall, Paras Defence and Space Technologies has shown a mixed performance in the quarter ending March 2024. While there are some positive aspects, there are also areas of concern that the company needs to address. Investors should carefully consider these factors before making any investment decisions.