Share the post "Gini Silk Mills ‘s Q1 Report: Profit Decreases by 14.52% YoY"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -11.68 % over the year, decrease in net sales/revenue by -24.82 %.
- Income over the Year and quarter: There has been either a marginal increase or a decline in other income over the past year which is 36.05 %. Marginal decrease of -17.4% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Gini Silk Mills Ltd.. Profit dropped by -15.71 % Year to Year, Gini Silk Mills Ltd.’s profitability dropped by -24.64 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -16.07 % Year to Year. EPS decreased by -24.8 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 9.894 Cr | Rs. 11.623 Cr | Rs. 8.738 Cr | -24.82 % | -11.68 % |
| Expenses | Rs. 9.4 Cr | Rs. 11.46 Cr | Rs. 8.61 Cr | -24.87 % | -8.4 % |
| Operating Profit | Rs. 0.49 Cr | Rs. 0.16 Cr | Rs. 0.13 Cr | -18.75 % | -73.47 % |
| OPM % | 4.95 % | 1.38 % | 1.49 % | + 0.11 % | -3.46 % |
| Other Income | Rs. 0.663 Cr | Rs. 1.092 Cr | Rs. 0.902 Cr | -17.4 % | + 36.05 % |
| Interest | Rs. 0.15 Cr | Rs. 0.25 Cr | Rs. 0.17 Cr | -32 % | + 13.33 % |
| Depreciation | Rs. 0.29 Cr | Rs. 0.36 Cr | Rs. 0.35 Cr | -2.78 % | + 20.69 % |
| Profit before tax | Rs. 0.71 Cr | Rs. 0.64 Cr | Rs. 0.51 Cr | -20.31 % | -28.17 % |
| Tax % | 12.36 % | 8.39 % | 2.33 % | -6.06 % | -10.03 % |
| Net Profit | Rs. 0.62 Cr | Rs. 0.7 Cr | Rs. 0.53 Cr | -24.29 % | -14.52 % |
| EPS in Rs | Rs. 1.12 | Rs. 1.25 | Rs. 0.94 | -24.8 % | -16.07 % |
Today, we’re looking at Gini Silk Mills Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -11.68 %. However, it did see a marginal slip of -24.82 % from the previous quarter. Expenses decreased slightly by -24.87 % quarter-on-quarter, aligning with the annual decline of -8.4 %. Operating profit, while down -73.47 % compared to last year, faced a quarter-on-quarter dip of -18.75 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -3.46 %, but an expansion of 0.11 % sequentially. Other income fell by -17.4 % compared to the last quarter, despite an annual growth of 36.05 %. Interest expenses dropped significantly by -32 % from the previous quarter, yet the year-over-year increase remains at a moderate 13.33 %. Depreciation costs fell by -2.78 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 20.69 %. Profit before tax declined annually by -28.17 % but saw a reduction from the preceding quarter by -20.31 %.
Tax expenses as a percentage of profits decreased slightly by -10.03 % compared to last year, with a more notable quarter-on-quarter decrease of -6.06 %. Net profit fell by -14.52 % year-on-year but witnessed a -24.29 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -16.07 % but a quarterly fall of -24.8 %. In summary, Gini Silk Mills Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 9.894 Cr | Rs. 11.623 Cr | Rs. 8.738 Cr | -24.82 % | -11.68 % |
| Expenses | Rs. 9.4 Cr | Rs. 11.46 Cr | Rs. 8.61 Cr | -24.87 % | -8.4 % |
| Operating Profit | Rs. 0.49 Cr | Rs. 0.16 Cr | Rs. 0.13 Cr | -18.75 % | -73.47 % |
| Net Profit | Rs. 0.62 Cr | Rs. 0.7 Cr | Rs. 0.53 Cr | -24.29 % | -14.52 % |
| EPS in Rs | Rs. 1.12 | Rs. 1.25 | Rs. 0.94 | -24.8 % | -16.07 % |
In reviewing Gini Silk Mills Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -11.68 % year-on-year, although there was a slight dip of -24.82 % from the previous quarter. Expenses decreased by -8.4 % compared to the previous year, with a decrease of -24.87 % quarter-on-quarter. Operating Profit dropped by -73.47 % annually, and saw a -18.75 % decrease from the last quarter.
Net Profit showed yearly decrease of -14.52 %, and experienced a -24.29 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -16.07 % annually, however dipped by -24.8 % compared to the last quarter. In essence, while Gini Silk Mills Ltd. faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
In analyzing the financial results for the company marked by BSE code 532406, a clear trend emerges. Over a five-year span, the company reported a profit of 42 percents, which increased to 54 percents in the most recent three-year period, suggesting a strong performance in the early stages of this timeframe. However, this success has been overshadowed by a trailing twelve-month (TTM) loss of 42 percents, signaling significant recent challenges. Compounding this issue is the fact that the company has not reported any sales during any of the timeframes analyzed, raising important questions about its operational model and the sustainability of its current strategies. Investors have been equally wary, as reflected in the stock price performance. The company’s stock traded at 112 percents over the past five years but has recently decreased to 47 percents, indicating a loss of market confidence. Over the last decade, the stock price was at 49 percents, pointing to longer-term concerns that could affect the company's future prospects.
With a market capitalization of ₹3,820 crore, the company’s stock is currently trading at ₹157, having fluctuated within a range of ₹224 / 86.0 over the years. The stock's P/E ratio of 65.0 reflects a relatively high valuation compared to its earnings, which could suggest strong future growth expectations or heightened investor demand. The company’s book value is ₹8.09, representing the total value of its assets on a per-share basis, while the dividend yield of 0.12% offers a modest return to shareholders. ROCE, at 47.4%, highlights the company's efficient use of capital in generating profits, while ROE at 38.7% underscores its ability to generate returns for shareholders. The debt-to-equity ratio of 0.09 is very low, indicating conservative financial management and minimal reliance on borrowed funds. Despite this, the company shows a negative net cash flow of ₹0.86 crore, which could point to cash management challenges or recent heavy investments. The Piotroski score of 8.00 suggests moderate financial strength, while the Graham Number, pegged at ₹21.0, offers a rough estimate of the stock's intrinsic value. The Price-to-Book (P/B) ratio of 19.4 signals that the stock is trading at a premium, which might reflect investor confidence in the company's growth trajectory.
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