Universal Cables Reports Mixed Q4 Results Amid Declining Profitability Concerns

Universal Cables has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of its performance. The company has experienced a notable shift in its evaluation, with the score reflecting a decline over the past three months.
On a positive note, Universal Cables reported net sales of Rs 607.54 crore, marking a year-on-year growth of 30.22%. This indicates a favorable trend in sales performance, suggesting that the company is managing to attract revenue despite the challenges it faces.

Conversely, the financial results also highlight significant concerns. Profit Before Tax (PBT) has seen a substantial decline, reported at Rs 9.67 crore, which represents a year-on-year decrease of 65.75%. Similarly, Profit After Tax (PAT) has fallen to Rs 15.83 crore, down 33.9% year-on-year. Additionally, the operating profit margin has reached its lowest point in five quarters at 5.70%, indicating a deterioration in operational efficiency.

The reliance on non-operating income, which constitutes 54.26% of PBT, raises questions about the sustainability of the company's financial model. This income has also peaked at Rs 11.47 crore in the last five quarters, further emphasizing the need for a more stable revenue stream.

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