Uttam Sugar Mills Reports Decline in Performance for Q2 2024, Receives 'Strong Sell' Rating
Uttam Sugar Mills, a smallcap company in the sugar industry, reported a significant decline in performance for the quarter ending September 2024. Net sales, profit before tax, and profit after tax have all seen a negative trend. The company's operating cash flow and ability to manage interest payments have also deteriorated. MarketsMojo has given the stock a 'Strong Sell' rating.
Uttam Sugar Mills, a smallcap company in the sugar industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Strong Sell' rating by MarketsMOJO.
According to the financial report, Uttam Sugar Mills has seen a significant decline in its performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from -22 to -29 in the last three months, indicating a very negative trend.
The net sales for the quarter were reported at Rs 385.73 crore, showing a decrease of 36.14% compared to the same period last year. This trend is expected to continue in the near term. The profit before tax less other income (PBT) has also fallen by 194.97% year on year, with a negative trend in the near term. The profit after tax (PAT) has also seen a decline of 200.0% year on year, with a negative trend in the near term.
The company's operating cash flow has been consistently falling in the last three years, with the latest figure at Rs 33.35 crore. The net sales have also been on a downward trend, with the lowest reported at Rs 385.73 crore in the last five quarters. The company's ability to manage interest payments has deteriorated, with the operating profit to interest ratio at its lowest in the last five quarters.
The interest cost has also increased by 21.64% over the previous half-yearly period, indicating increased borrowings. The operating profit (PBDIT) has been at its lowest in the last five quarters, with a negative trend in the near term. The operating profit margin has also decreased to 0.94%, showing a decline in the company's efficiency.
The PBT less other income has been at its lowest in the last five quarters, with a negative trend in the near term. The earnings per share (EPS) have also decreased to Rs -4.10, indicating a decline in profitability and lower earnings for shareholders.
In conclusion, the financial results for the quarter ending September 2024 have not been favorable for Uttam Sugar Mills. The company's performance has been on a downward trend, and the stock has been given a 'Strong Sell' rating by MarketsMOJO.
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