SPIC's Q1 2024 Financial Results Show Significant Decline, MarketsMOJO Recommends 'Sell' Call

Southern Petrochemical Industries Corporation (SPIC), a smallcap fertilizer company, recently declared its financial results for the quarter ending March 2024. However, the news is not positive for the company as it has seen a very negative financial performance in this quarter.

According to MarketsMOJO, a leading financial analysis platform, the stock call for SPIC is 'Sell'. The company's financial score has fallen to -37 from -27 in the last three months, indicating a decline in its financial health.

One of the major factors contributing to this negative performance is the significant decrease in net sales. The company's net sales for the quarter were at Rs 124.88 crore, which is a decrease of 79.9% compared to the average net sales of the previous four quarters. This trend is expected to continue in the near term.

Another concerning aspect is the decline in profit before tax (PBT) and profit after tax (PAT). The PBT for the quarter was at Rs 1.46 crore, a decrease of 97.5% compared to the average PBT of the previous four quarters. Similarly, the PAT for the quarter was at Rs 24.38 crore, a decrease of 40.1% compared to the average PAT of the previous four quarters.

The company's interest cost has also increased significantly, indicating increased borrowings. This is evident from the 150.36% increase in interest expenses for the quarter. Moreover, the company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

Overall, SPIC's financial performance for the quarter ending March 2024 has been very negative. The company's sales, profitability, and ability to manage interest payments have all declined. Additionally, the company's income from non-business activities is high, which is not a sustainable business model. As a result, MarketsMOJO has recommended a 'Sell' call for SPIC's stock.