Sadbhav Infra. Reports Mixed Performance in Q1 2024, Highlighted by Improved Operating Profit and PBT

Sadbhav Infrastructure Projects, a microcap engineering company, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.

According to the financial report, Sadbhav Infra. has shown a flat performance in the quarter, with a slight improvement in its score from -14 to -4 in the last three months. However, there are some positive aspects to the company's financials.

One of the key highlights is the company's operating profit to interest ratio, which is the highest it has been in the last five quarters at 1.13 times. This indicates that Sadbhav Infra. is improving in its ability to manage interest payments. Additionally, the company's profit before tax (PBT) less other income has also shown improvement, with the highest value of Rs -18.71 crore in the last five quarters. This suggests a positive trend in the near term for PBT.

On the other hand, there are some areas of concern for Sadbhav Infra. For instance, the company's interest expenses have increased by 128.46% in the preceding nine months, indicating a rise in borrowings. The net sales for the quarter have also fallen by -14.3% compared to the average of the previous four quarters. This shows a negative trend in the near term for sales. Moreover, the company's cash and cash equivalents have decreased to the lowest value of Rs 41.24 crore in the last six half-yearly periods, indicating a deterioration in short-term liquidity. Additionally, the debtors turnover ratio, which measures the pace of settling debtors, has also slowed down in the last five half-yearly periods.

Overall, Sadbhav Infrastructure Projects 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 in order to improve its financials. Investors should carefully consider these factors before making any investment decisions.