Sunshine Capital Reports Positive Q1 Results, But Operating Cash Flow Declines

Sunshine Capital, a microcap finance company, has recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Sunshine Capital has shown a positive performance in the quarter, with a score of 18 compared to 11 in the previous quarter. This improvement can be attributed to several factors.

One of the key highlights of the financials is the significant growth in net sales, which have increased by 1,168.30% year on year, reaching Rs 75.21 crore. This is a very positive trend for the company. Additionally, the profit before tax less other income (PBT) has also shown a growth of 676.7% over the average PBT of the previous four quarters, standing at Rs 2.00 crore. The operating profit (PBDIT) for the quarter is also the highest in the last five quarters, indicating a positive trend in the near term.

Furthermore, the company's profit after tax (PAT) for the quarter is also the highest in the last five quarters, at Rs 2.00 crore. This shows a positive trend in the near term for the company. In the nine-month period, the company has already surpassed its sales from the previous twelve months, with net sales of Rs 75.21 crore.

However, there are some areas that need improvement for Sunshine Capital. The operating cash flow for the company has been the lowest in the last three years, at Rs -212.04 crore. This indicates a decline in the company's cash revenues from business operations.

Overall, Sunshine Capital has shown a positive financial performance in the quarter ending March 2024. With a significant increase in net sales and profits, the company is on a positive trajectory. However, it is important for the company to address the decline in operating cash flow to sustain its growth in the long term.