Rajesh Exports' Q3 Financial Results Show Significant Decline, 'Sell' Call Given

Rajesh Exports, a midcap company in the diamond and gold jewellery industry, recently declared its financial results for the quarter ending December 2023. However, the results have not been favorable, with a score of -31, a significant decrease from -18 in the last three months.

The company's net sales for the quarter were at Rs 65,476.89 crore, a decline of -21.5% compared to the average net sales of the previous four quarters, which stood at Rs 83,419.22 crore. This indicates a very negative trend in near-term sales.

Similarly, the profit before tax less other income (PBT) for the quarter was at Rs 0.63 crore, a decrease of -99.8% from the average PBT of the previous four quarters, which was Rs 280.13 crore. The profit after tax (PAT) for the quarter was at Rs 12.43 crore, a decline of -95.6% from the average PAT of the previous four quarters, which was Rs 285.56 crore. This shows a very negative trend in near-term profitability.

The operating profit (PBDIT) for the quarter was at its lowest at Rs 11.87 crore and has been falling each quarter in the last five quarters. The same trend can be seen in PBT and PAT, which have also been declining each quarter in the last five quarters. This indicates a very negative trend in near-term operating profit.

The company's operating profit margin for the quarter was at its lowest at 0.02% in the last five quarters, showing a deterioration in efficiency. Additionally, the non-operating income for the quarter was at 95.03% of the PBT, indicating a high income from non-business activities, which may not be a sustainable business model.

The earnings per share (EPS) for the quarter were at its lowest at Rs 0.42 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Based on these financial results, MarketsMOJO has given a 'Sell' call for Rajesh Exports' stock.