Universal Starch-Chem Allied ‘s Q2 Results: Profit Drops by 1181.58% YoY

The comprehensive analytics outlining the performance and outlook of Universal Starch-Chem Allied Ltd.‘s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Today, we’re looking at Universal Starch-Chem Allied Ltd.’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a significant year-over-year sales decline of -24.15 %. However, it did see a marginal slip of -31.77 % from the previous quarter. Expenses decreased slightly by -24.83 % quarter-on-quarter, aligning with the annual decline of -16.97 %. Operating profit, while down -227.38 % compared to last year, faced a quarter-on-quarter dip of -196.84 %, 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 -9.14 %, but a shrinkage of -9.77 % sequentially. Other income rose by 13.41 % compared to the last quarter, despite an annual decline of -31.15 %. Interest expenses surged remarkably by 5.36 % from the previous quarter, yet the year-over-year increase remains at a moderate 7.76 %. Depreciation costs climbed by 3.38 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 6.99 %. Profit before tax declined annually by -937.5 % but saw a reduction from the preceding quarter by -535.5 %.
Tax expenses as a percentage of profits decreased slightly by -31.79 % compared to last year, with a more notable quarter-on-quarter decrease of -32.57 %. Net profit fell by -1181.58 % year-on-year but witnessed a -663.01 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -2274.44 % but a quarterly fall of -1221.49 %. In summary, Universal Starch-Chem Allied Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Universal Starch-Chem Allied Ltd.’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -24.15 % year-on-year, although there was a slight dip of -31.77 % from the previous quarter. Expenses decreased by -16.97 % compared to the previous year, with a decrease of -24.83 % quarter-on-quarter. Operating Profit dropped by -227.38 % annually, and saw a -196.84 % decrease from the last quarter.
Net Profit showed yearly decrease of -1181.58 %, and experienced a -663.01 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -2274.44 % annually, however dipped by -1221.49 % compared to the last quarter. In essence, while Universal Starch-Chem Allied Ltd. faces strong annual decline indicators, short-term fluctuations suggest the need for agile strategies to navigate market dynamics effectively. That’s all for now in the financial sector.