Shree Bhavya Fabrics Reports Mixed Performance in Q2 of FY 2024-25

Shree Bhavya Fabrics, a microcap textile company, has recently declared its financial results for the quarter ending September 2024. The stock call for the company by MarketsMOJO is 'Sell'.

According to the financial report, Shree Bhavya has seen a flat performance in the second quarter of the fiscal year 2024-25, with a score of -1 compared to 0 in the previous quarter. However, there are some positive aspects to the company's financials.

The net sales for the quarter were the highest in the last five quarters at Rs 54.73 crore, showing a growth of 24.8% over the average net sales of the previous four quarters. This indicates a positive trend in the company's sales in the near term.

The operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 3.14 crore, showing a positive trend in the near term. Similarly, the profit before tax (PBT) was also the highest in the last five quarters at Rs 0.71 crore, indicating a positive trend.

In the nine-month period, the company's profit after tax (PAT) was higher at Rs 1.89 crore compared to the preceding 12-month period ended September 2024, which was Rs 1.63 crore. This shows that the company has already surpassed its sales from the previous year in just nine months.

However, there are some areas of concern for Shree Bhavya. The operating cash flow has been consistently falling in the last three years, with the lowest being Rs 8.91 crore in the last fiscal year. This indicates a decline in the company's cash revenues from business operations.

The interest cost for the quarter has also increased by 25.29% compared to the previous quarter, which could signify increased borrowings by the company.

Overall, Shree Bhavya Fabrics has shown a mixed performance in the recent quarter, with some positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.