Sky Gold's Q1 FY2024 financial results show impressive growth and efficient management, MarketsMOJO gives 'Buy' call.

Sky Gold, a smallcap jewellery company, has recently announced its financial results for the quarter ending June 2024. The company has shown an outstanding performance with a score of 30, which is a significant improvement from its previous score of 20 in the last three months.

One of the key highlights of the financial results is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 116.2% to Rs 27.22 crore compared to the average PBT of the previous four quarters at Rs 12.59 crore. This indicates a very positive trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also shown a remarkable growth of 109.8% to Rs 21.23 crore compared to the average PAT of the previous four quarters at Rs 10.12 crore. This is a clear indication of the company's strong financial performance in the near term.

The company's Net Sales have also seen a significant increase, with the highest quarterly sales at Rs 723.03 crore and a growth rate of 65.7% compared to the average Net Sales of the previous four quarters at Rs 436.37 crore. This shows a very positive trend in the near term for the company's sales.

Sky Gold's ability to manage interest payments has also improved, with the Operating Profit to Interest ratio at its highest in the last five quarters at 4.66 times. This signifies the company's efficient management of its interest payments.

The Operating Profit (PBDIT) has also shown a positive trend with the highest quarterly profit at Rs 37.26 crore in the last five quarters. The Operating Profit Margin has also improved to its highest at 5.15%, indicating an increase in the company's efficiency.

In terms of profitability, Sky Gold has shown a positive trend with the highest PBT and PAT at Rs 27.22 crore and Rs 21.23 crore respectively in the last five quarters. The Earnings per Share (EPS) has also increased to its highest at Rs 16.03, indicating a higher return for shareholders.

However, one area of concern for the company is the rising interest cost, which has increased by 20.85% (QoQ) to its highest at Rs 8.00 crore in the last five quarters. This could signify increased borrowings by the company.

Overall, Sky Gold's financial results for the quarter ending June 2024 have been impressive, with strong growth in key areas such as PBT, PAT, and Net Sales. The company's efficient management of interest payments and increasing profitability are positive signs for investors. Based on these financials, MarketsMOJO has given a 'Buy' call for Sky Gold's stock.