SKM Egg Products Export (India) Reports Negative Financial Performance in Q1 FY25

SKM Egg Products Export (India) has recently announced its financial results for the quarter ending March 2024. According to the report, the company has seen a very negative performance in terms of financials, with a score of -20 compared to -19 in the previous quarter.

Despite this, there are some positive aspects to note from the financial report. The company has shown a high Debtors Turnover Ratio of 24.24 times in the last five half-yearly periods, indicating that it has been able to settle its debtors faster.

However, there are also some concerning factors in the report. The net sales for the quarter have fallen by -32.8% to Rs 117.84 crore, compared to the average net sales of the previous four quarters at Rs 175.28 crore. This indicates a very negative trend in the near term for sales.

Similarly, the Profit Before Tax less Other Income (PBT) has also fallen by -56.6% to Rs 11.11 crore, compared to the average PBT of the previous four quarters at Rs 25.59 crore. The Profit After Tax (PAT) has also seen a decline of -43.4% to Rs 12.09 crore, compared to the average PAT of the previous four quarters at Rs 21.36 crore.

Moreover, the net sales for the quarter have been the lowest in the last five quarters, and the interest cost has increased by 10.08% (QoQ), indicating a rise in borrowings.

Based on these financial results, MarketsMOJO has given a ‘Sell’ call for SKM Egg Products Export (India). Investors should carefully consider these factors before making any investment decisions.