Sindhu Trade Links reports strong financial performance in Q1 FY25, with improved profitability and efficient debt management

Sindhu Trade Links, a smallcap company in the diversified industry, has recently declared its financial results for the quarter ending March 2024. The company has shown positive performance in this quarter, with a significant improvement in its financial score from 0 to 19 in the last three months.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 615.7% to Rs 94.88 crore compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term.

Similarly, the company’s Profit After Tax (PAT) has also shown a significant growth of 304.1% to Rs 71.50 crore compared to the average PAT of the previous four quarters. This indicates a positive trend in the company’s profitability.

Another noteworthy aspect of Sindhu Trade’s financials is its Debtors Turnover Ratio, which is at its highest at 4.85 times and has shown consistent growth in the last five half-yearly periods. This signifies that the company has been able to settle its debtors faster, which is a positive sign for its financial health.

In terms of sales, the company has recorded its highest net sales of Rs 554.10 crore in the last five quarters, with a growth of 31.5% compared to the average net sales of the previous four quarters. This indicates a positive trend in the company’s sales performance.

Sindhu Trade has also shown a strong operating profit (PBDIT) of Rs 140.12 crore in the last five quarters, with a positive trend in the near term. The company’s operating profit margin has also improved to its highest at 25.29%, indicating increased efficiency.

On the downside, the company’s interest cost has increased by 34.95% in the last half-yearly period, which could be a cause for concern as it signifies increased borrowings.

Overall, Sindhu Trade’s financial performance in the quarter ending March 2024 has been positive, with several key factors contributing to its growth. The company’s efficient management of debtors and improved profitability are some of the highlights of its financials. However, the increase in interest cost needs to be monitored closely. Based on these financials, MarketsMOJO has given a ‘Sell’ call for the company’s stock.