Sakthi Sugars Reports Negative Financial Performance in Q2 FY25, Operating Cash Flow Remains Strong

Nov 18 2024 10:46 AM IST
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The company's operating cash flow has been consistently growing, but there are concerns regarding its net sales, profitability, and ability to manage interest payments. Sakthi Sugars, a microcap company in the sugar industry, has reported a negative financial performance for the quarter ending September 2024. While the operating cash flow has been consistently growing, there are concerns about the company's net sales, profitability, and ability to manage interest payments. Investors should carefully consider these factors before making any investment decisions.

Sakthi Sugars, a microcap company in the sugar industry, recently announced its financial results for the quarter ending September 2024. The stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Sakthi Sugars has seen a negative performance in the quarter, with a score of -15 compared to 17 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating cash flow for the year was the highest at Rs 113.88 crore and has been growing consistently over the past three years. This indicates that the company has been generating higher cash revenues from its business operations.


On the other hand, there are some areas of concern for Sakthi Sugars. The net sales for the quarter were at Rs 73.38 crore, which is a significant decrease of -72.9% compared to the average net sales of the previous four quarters. This shows a negative trend in the company’s sales in the near term. The profit before tax (PBT) has also fallen by -279.5% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of -334.7% compared to the average PAT of the previous four quarters. This indicates a negative trend in the company’s profitability in the near term.


Furthermore, the company’s ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters. The net sales and operating profit have also been at their lowest in the last five quarters, showing a negative trend in the company’s performance. The operating profit margin has also decreased to -30.36%, indicating a decline in the company’s efficiency.


It is worth noting that the non-operating income for the quarter was the highest in the last five quarters. However, this increase in income from non-business activities may not be sustainable.


Overall, Sakthi Sugars has seen a negative financial performance in the quarter ending September 2024. Investors should carefully consider these factors before making any investment decisions.


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