Rico Auto Industries Reports Negative Financial Results for Q1 FY25
Rico Auto Industries, a smallcap company in the auto ancillary industry, has recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Rico Auto Industries is ‘Sell’.
The company has seen a negative financial performance in the quarter, with a score of -13 compared to 2 in the previous quarter. However, there are some positive aspects in the financials that are worth noting. Rico Auto Industries has shown a high Debtors Turnover Ratio of 6.49 times in the last five half yearly periods, indicating that the company has been able to settle its debtors faster.
On the other hand, there are some concerning factors in the financials as well. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -62.1% compared to the average PBT of the previous four quarters. Similarly, the Profit After Tax (PAT) has also fallen by -41.1% compared to the average PAT of the previous four quarters. The Operating Profit (PBDIT) for the quarter is also at its lowest in the last five quarters, indicating a negative trend in the near term. The Operating Profit Margin is also at its lowest in the last five quarters, showing a deterioration in the company’s efficiency.
Moreover, the Non Operating Income for the quarter is 38.54% of the Profit Before Tax, which suggests that the company’s income from non-business activities is high and may not be sustainable in the long run.
Overall, the financial results for the quarter ending June 2024 for Rico Auto Industries have been negative, with some concerning factors that need to be addressed. Investors are advised to carefully consider these factors before making any investment decisions.
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