Raja Bahadur Int's Q1 FY25 financial report shows positive sales growth, but declining profitability and increased borrowings raise concerns
Raja Bahadur International, a microcap textile company, has recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.
According to the financial report, Raja Bahadur Int has shown positive performance in the quarter, with a score of 10 compared to 33 in the previous quarter. The company’s net sales have seen a significant growth of 132.3% at Rs 7.19 crore, compared to the average net sales of the previous four quarters at Rs 3.10 crore. This indicates a very positive sales trend in the near term.
Moreover, the company’s net sales for the quarter were the highest in the last five quarters, further highlighting the positive sales trend. However, the company’s profit after tax (PAT) has fallen by -637.6% at Rs -1.68 crore, compared to the average PAT of the previous four quarters at Rs 0.31 crore. This indicates a very negative PAT trend in the near term.
Another concerning factor is the company’s interest cost, which has increased by 106.84% quarter on quarter (QoQ) at Rs 3.93 crore. This signifies increased borrowings by the company. The interest cost for the quarter was also the highest in the last five quarters, further highlighting the increased borrowings.
Additionally, the company’s earnings per share (EPS) for the quarter were the lowest in the last five quarters at Rs -81.95. This indicates a declining profitability and lower earnings for shareholders.
Overall, Raja Bahadur International has shown positive sales growth in the quarter, but the decline in PAT and increasing interest cost are areas of concern. Investors are advised to hold their position in the company’s stock, as recommended by MarketsMOJO.
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