Sangam India's Financial Performance Shows Significant Decline in Latest Quarter

Sangam India, a smallcap textile company, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a negative financial performance with a score of -16, a significant decrease from -12 in the last three months.

The company's Profit Before Tax (PBT) has fallen by 71.4% to Rs 3.23 crore, compared to the average PBT of the previous four quarters which was Rs 11.28 crore. This indicates a very negative trend in the near term. Similarly, the Profit After Tax (PAT) has also fallen by 39.7% to Rs 7.21 crore, compared to the average PAT of the previous four quarters which was Rs 11.95 crore.

One of the major concerns for Sangam India is its rising interest cost, which has grown by 47.85% over the preceding nine months period. This signifies increased borrowings by the company. Additionally, the company's Operating Cash Flow has been consistently falling each year in the last three years, with the latest figure being the lowest at Rs 160.06 crore.

Moreover, the company's Operating Profit to Interest ratio has also been consistently decreasing, with the latest figure being the lowest in the last five quarters at 2.26 times. This indicates a deteriorating ability of the company to manage its interest payments.

Overall, the recent financial results of Sangam India have not been positive, with various factors contributing to its negative performance. Investors should take note of these figures and make informed decisions while investing in the company's stock.