Sharda Ispat's Q2 financials show decline in sales and profitability

Sharda Ispat, a microcap company in the steel/sponge iron/pig iron industry, has recently declared its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Sell'.

According to the financials, the company has seen a negative performance in the second quarter of the fiscal year 2024-2025, with a score of -17 compared to 3 in the previous quarter. However, there are some positive aspects to the company's financials. Sharda Ispat has recorded the highest annual operating cash flow of Rs 7.44 crore in the last three years, indicating a strong revenue generation from its business operations.

On the other hand, there are some areas of concern for the company. The net sales for the quarter have fallen by -39.6% to Rs 32.45 crore, which is significantly lower than the average net sales of the previous four quarters at Rs 53.74 crore. This indicates a negative trend in the company's sales in the near term. Similarly, the profit before tax less other income (PBT) has also fallen by -101.1% to Rs -0.05 crore, compared to the average PBT of Rs 4.38 crore in the previous four quarters. The profit after tax (PAT) has also seen a decline of -86.6% to Rs 0.49 crore, indicating a negative trend in the company's profitability.

Moreover, the company's operating profit (PBDIT) and operating profit margin have also hit their lowest in the last five quarters, at Rs 0.51 crore and 1.57% respectively. This suggests a decline in the company's efficiency. The PBT has also hit its lowest at Rs -0.05 crore in the last five quarters, indicating a negative trend in the near term. The earnings per share (EPS) have also declined to its lowest at Rs 0.96 in the last five quarters, indicating a lower profitability for the shareholders.

In conclusion, while Sharda Ispat has shown some positive aspects in its financials, the overall performance for the quarter ending September 2024 has been negative. Investors should carefully consider these factors before making any investment decisions.