Urja Global's Q3 Financial Report Shows Mixed Results, Debt to Equity Ratio a Concern

Debt to Equity Ratio- Half Yearly: Highest at 1.08 and Increased each half year in the last five half yearly periods.Company's debt has increased compared to equity, which may pose a risk to the company's financial stability.

Urja Global, a smallcap company in the power industry, recently announced its financial results for the quarter ending December 2023. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Urja Global's performance for the quarter has remained flat. However, there has been an improvement in the company's overall score, which has increased from -4 to 2 in the last three months.

The company's net sales for the quarter were the highest in the last five quarters, standing at Rs 11.12 crore. This indicates a positive trend in the company's sales in the near term. Similarly, the operating profit (PBDIT) for the quarter was also the highest in the last five quarters, at Rs 0.87 crore. The operating profit margin has also seen an improvement, reaching its highest at 7.82%.

Urja Global's profitability has also increased, with the highest profit before tax (PBT) of Rs 0.56 crore and profit after tax (PAT) of Rs 0.94 crore in the last five quarters. The earnings per share (EPS) have also shown an upward trend, reaching its highest at Rs 0.02. This indicates that the company has been able to create higher earnings for its shareholders.

However, there are some areas of concern for Urja Global. The inventory turnover ratio for the half-yearly period has been the lowest at 1.52 times and has fallen each half year in the last five periods. This suggests that the company's pace of selling inventory has slowed down. Additionally, the debt to equity ratio has been the highest at 1.08 and has increased each half year in the last five periods. This indicates that the company's debt has increased compared to its equity, which may pose a risk to its financial stability.

Overall, Urja Global's financial performance for the quarter ending December 2023 has been mixed, with some positive and negative trends. Investors are advised to carefully consider these factors before making any investment decisions.