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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 -20.48 % over the year, decrease in net sales/revenue by -9.31 %.
- 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 186.12 %. Marginal decrease of -2.61% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for Sharda Ispat Ltd.. Notable increase of 28.03 % in net profit Year to Year, Sharda Ispat Ltd.’s profitability dropped by -29.18 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 28.07 % Year to Year. EPS decreased by -29.13 % 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. 60.061 Cr | Rs. 52.66 Cr | Rs. 47.758 Cr | -9.31 % | -20.48 % |
Expenses | Rs. 56.59 Cr | Rs. 47.8 Cr | Rs. 43.81 Cr | -8.35 % | -22.58 % |
Operating Profit | Rs. 3.47 Cr | Rs. 4.86 Cr | Rs. 3.95 Cr | -18.72 % | + 13.83 % |
OPM % | 5.78 % | 9.23 % | 8.27 % | -0.96 % | + 2.49 % |
Other Income | Rs. 0.209 Cr | Rs. 0.614 Cr | Rs. 0.598 Cr | -2.61 % | + 186.12 % |
Interest | Rs. 0.35 Cr | Rs. 0.35 Cr | Rs. 0.32 Cr | -8.57 % | -8.57 % |
Depreciation | Rs. 0.21 Cr | Rs. 0.21 Cr | Rs. 0.21 Cr | + 0 % | + 0 % |
Profit before tax | Rs. 3.12 Cr | Rs. 4.91 Cr | Rs. 4.02 Cr | -18.13 % | + 28.85 % |
Tax % | 25.78 % | 14.77 % | 26.08 % | + 11.31 % | + 0.3 % |
Net Profit | Rs. 2.32 Cr | Rs. 4.19 Cr | Rs. 2.96 Cr | -29.36 % | + 27.59 % |
EPS in Rs | Rs. 4.56 | Rs. 8.24 | Rs. 5.84 | -29.13 % | + 28.07 % |
Today, we’re looking at Sharda Ispat 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 -20.48 %. However, it did see a marginal slip of -9.31 % from the previous quarter. Expenses decreased slightly by -8.35 % quarter-on-quarter, aligning with the annual decline of -22.58 %. Operating profit, while up 13.83 % compared to last year, faced a quarter-on-quarter dip of -18.72 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 2.49 %, but a shrinkage of -0.96 % sequentially. Other income fell by -2.61 % compared to the last quarter, despite an annual growth of 186.12 %. Interest expenses dropped significantly by -8.57 % from the previous quarter, yet the year-over-year decrease remains at a moderate -8.57 %. Depreciation costs climbed by 0 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 0 %. Profit before tax grew annually by 28.85 % but saw a reduction from the preceding quarter by -18.13 %.
Tax expenses as a percentage of profits increased slightly by 0.3 % compared to last year, with a more notable quarter-on-quarter increase of 11.31 %. Net profit rose by 27.59 % year-on-year but witnessed a -29.36 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 28.07 % but a quarterly fall of -29.13 %. In summary, Sharda Ispat 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. 60.061 Cr | Rs. 52.66 Cr | Rs. 47.758 Cr | -9.31 % | -20.48 % |
Expenses | Rs. 56.59 Cr | Rs. 47.8 Cr | Rs. 43.81 Cr | -8.35 % | -22.58 % |
Operating Profit | Rs. 3.47 Cr | Rs. 4.86 Cr | Rs. 3.95 Cr | -18.72 % | + 13.83 % |
Net Profit | Rs. 2.32 Cr | Rs. 4.19 Cr | Rs. 2.96 Cr | -29.36 % | + 27.59 % |
EPS in Rs | Rs. 4.56 | Rs. 8.24 | Rs. 5.84 | -29.13 % | + 28.07 % |
In reviewing Sharda Ispat Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -20.48 % year-on-year, although there was a slight dip of -9.31 % from the previous quarter. Expenses decreased by -22.58 % compared to the previous year, with a decrease of -8.35 % quarter-on-quarter. Operating Profit surged by 13.83 % annually, and saw a -18.72 % decrease from the last quarter.
Net Profit showed yearly increase of 27.59 %, and experienced a -29.36 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 28.07 % annually, however dipped by -29.13 % compared to the last quarter. In essence, while Sharda Ispat Ltd. exhibits strong annual growth indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.
32
3-Year Profit
25
5-Year Profit
9
10-Year Profit
283
Current Price
3,055
Market Cap
The company associated with BSE code 540797 presents a financial narrative of mixed fortunes. Over a five-year period, the company achieved a profit of 25 units, which subsequently rose to 32 units over the three years that followed. Yet, despite this initial growth, the company now faces a troubling trailing twelve-month (TTM) profit loss of 26 units. What’s particularly striking is the company’s complete absence of reported sales across all analyzed periods, which brings into question the viability of its revenue generation strategies and long-term business sustainability. Moreover, stock prices have been highly volatile, reflecting the company’s uncertain future. While the stock was valued at 26 units over the last five years, it has recently dropped to 15 units, underscoring a rapid decline in market confidence. Over the longer ten-year period, the stock price was at 0 units, illustrating a pattern of fluctuating performance that could pose risks for potential investors.
The company currently holds a market cap of ₹3,055 crore, with its stock trading at ₹283. Historically, the stock has fluctuated between ₹340 / 210, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at 39.5, indicating that the stock is perceived as highly valued by the market, possibly driven by expectations of future earnings growth. The book value per share is ₹92.6, which offers insight into the company's intrinsic worth, while its dividend yield of 0.42% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is 11.0%, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is 8.16%, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at 0.38, which is a positive indicator of financial stability. However, the company’s net cash flow of ₹14.9 crore raises concerns about its liquidity position. The Piotroski score of 5.00 reflects the company’s overall financial health, while the Graham Number of ₹123 suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of 3.05 indicates that the stock is trading at a premium to its book value, which might imply market optimism about the company's future growth prospects.