Shiva Cement's Q1 FY25 Financial Results Show Mixed Performance, Investors Urged to Analyze Carefully

Shiva Cement, a smallcap company in the cement industry, recently declared its financial results for the quarter ending March 2024. According to the latest update, the stock call for Shiva Cement is ‘Sell’ by MarketsMOJO.

The company’s financial performance for the quarter has remained flat, with a score of 1 compared to 7 in the previous 3 months. However, there are some positive aspects to the company’s performance based on the June 2024 financials.

One of the key highlights is the significant growth in net sales for the half-yearly period, which stands at Rs 241.06 crore, showing a staggering increase of 24,105,999,900.00% year on year. This indicates a very positive sales trend for the company. Moreover, the net sales for the half-yearly period are higher than the preceding 12 months, which was Rs 202.28 crore. This shows that the company has already surpassed its sales for the previous year in just six months.

However, there are some areas of concern for Shiva Cement based on the June 2024 financials. The interest cost for the nine-month period has increased by 161.50%, reaching Rs 96.78 crore. This suggests that the company has taken on more borrowings, leading to a rise in interest expenses.

Furthermore, the profit before tax less other income (PBT) for the quarter has fallen by -27.8% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term. Similarly, the profit after tax (PAT) for the quarter has also declined by -26.7% compared to the average PAT of the previous four quarters. This indicates a negative trend in the near term for PAT.

Overall, Shiva Cement’s financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors are advised to carefully consider these factors before making any investment decisions.