Sayaji Industries Reports Negative Performance in Q2, But Shows Positive Sales Trend

Sayaji Industries, a microcap FMCG company, has recently announced its financial results for the quarter ending June 2024. The company has seen a negative performance in this quarter, with a score of -12, which has improved from -21 in the last three months.

Despite this negative performance, there are some positive aspects to note from the financials. The net sales for the quarter were the highest in the last five quarters, at Rs 273.31 crore. This indicates a positive trend in sales in the near term.

However, there are also some areas that are not performing well for Sayaji Industries. The Profit Before Tax less Other Income (PBT) for the quarter was at Rs -5.85 crore, which has fallen by 125% year on year. The near term trend for PBT is also very negative. Similarly, the Profit After Tax (PAT) for the quarter was at Rs -2.89 crore, with a fall of 270.5% year on year. The near term trend for PAT is also very negative.

Another concerning aspect is the interest cost, which has grown by 22.02% over the preceding nine months period. This signifies increased borrowings for the company, which may lead to a stressed liquidity situation. The Debt-Equity Ratio for the half-yearly period is also at its highest in the last five periods, at 1.66 times. This indicates that the company is borrowing more to fund its operations.

MarketsMOJO has given a 'Strong Sell' call for Sayaji Industries' stock, based on these financial results. Investors should carefully consider these factors before making any investment decisions.