Tamil Nadu Petro Products Reports Decline in Performance for Q4 2023

Tamil Nadu Petro Products, a microcap company in the petrochemical industry, recently announced its financial results for the quarter ending December 2023. The results, declared on February 8, 2024, have received a "Sell" call from MarketsMOJO.

According to the financial report, T N Petro Prod. has seen a significant decline in its performance, with a score of -21 compared to -17 in the previous quarter. This decline can be attributed to various factors, including a decrease in net sales, profit before tax, and profit after tax.

The company's net sales for the quarter were at Rs 345.88 crore, which is a decrease of 26.2% from the average net sales of the previous four quarters. This trend of declining sales has been consistent in the last five quarters, indicating a negative near-term sales trend.

Similarly, the profit before tax (PBT) for the quarter was at Rs 11.83 crore, a decrease of 19.7% from the average PBT of the previous four quarters. The profit after tax (PAT) also saw a decline of 9.0% from the average PAT of the previous four quarters.

One concerning aspect highlighted in the report is the company's high non-operating income, which accounts for 41.32% of the PBT. This indicates that a significant portion of the company's income is coming from non-business activities, which may not be sustainable in the long run.

The earnings per share (EPS) for the quarter were at its lowest in the last five quarters, at Rs 0.50. This decline in profitability is a cause for concern for shareholders.

Overall, the financial results for the quarter ending December 2023 have not been favorable for Tamil Nadu Petro Products. The company will need to address the issues affecting its performance to improve its financial standing in the future.