Sterlite Technologies' Q4 financial results show significant decline in key areas

Sterlite Technologies, a midcap company in the cable industry, recently declared its financial results for the quarter ending March 2024. According to MarketsMOJO, a leading stock analysis platform, the stock call for Sterlite Tech. is 'Sell'.

The company's financial performance for the quarter has been very negative, with a score of -30 compared to -24 in the previous quarter. This decline can be attributed to various factors, as seen in the financials for March 2024.

One of the major concerns is the decrease in net sales, which has fallen by 26.6% to Rs 1,140.00 crore compared to the average net sales of the previous four quarters at Rs 1,552.50 crore. This trend is expected to continue in the near term.

Another area of concern is the company's ability to manage interest payments, as seen in the declining trend of operating profit to interest ratio in the last five quarters. The latest quarter has the lowest ratio at 0.60 times.

The profit before tax (PBT) has also taken a hit, with a decline of 631.9% to Rs -121.00 crore compared to the average PBT of the previous four quarters at Rs 22.75 crore. Similarly, the profit after tax (PAT) has fallen by 412.5% to Rs -83.00 crore compared to the average PAT of the previous four quarters at Rs 26.56 crore.

The operating profit margin has also reached its lowest point at 4.65% in the last five quarters, indicating a decline in the company's efficiency. The earnings per share (EPS) have also decreased to its lowest at Rs -2.05, showing a decline in profitability and lower earnings for shareholders.

Overall, Sterlite Technologies has seen a negative financial performance in the quarter ending March 2024. Investors are advised to take note of these factors before making any investment decisions.