Sai Silks (Kalamandir) Reports Decline in Financial Performance for Q1 FY25

Sai Silks (Kalamandir), a smallcap retail company, recently announced its financial results for the quarter ending June 2024. However, the news is not positive as the company has seen a decline in its financial performance. The score has fallen from 5 to -17 in the last 3 months.

One of the major factors contributing to this decline is the net sales, which have fallen by 22.2% to Rs 267.29 crore compared to the average net sales of the previous four quarters, which was Rs 343.39 crore. This indicates a negative trend in the company’s sales in the near term.

The profit before tax less other income (PBT) has also seen a significant decline of 114.1% to Rs -3.93 crore compared to the average PBT of the previous four quarters, which was Rs 27.81 crore. This trend is also negative in the near term.

Similarly, the profit after tax (PAT) has fallen by 91.7% to Rs 2.09 crore compared to the average PAT of the previous four quarters, which was Rs 25.22 crore. 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 company’s operating profit (PBDIT) has also seen a decline, being the lowest at Rs 18.92 crore in the last five quarters. The operating profit margin has also decreased to 7.08%, indicating a deterioration in the company’s efficiency.

Moreover, the non-operating income is 239.86% of the PBT, which suggests that the company’s income from non-business activities is high, which is not a sustainable business model.

Lastly, the earnings per share (EPS) have also declined to Rs 0.14, indicating a decline in profitability and lower earnings for shareholders.

In conclusion, Sai Silks (Kalamandir) has seen a negative financial performance in the quarter ending June 2024, with declining sales, profits, and efficiency. This has led to a ‘Sell’ stock call by MarketsMOJO.