Ambika Cotton Mills announced Financial Results Q1 2024

The comprehensive analytics outlining the performance and outlook of Ambika Cotton Mills Limited‘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 Ambika Cotton Mills Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -5.79 %. However, it did see a marginal increase of 1.6 % from the previous quarter. Expenses decreased slightly by -0.11 % quarter-on-quarter, aligning with the annual decline of -10.96 %. Operating profit, while up 34.69 % compared to last year, faced a quarter-on-quarter increase of 11.49 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 4.86 %, but an expansion of 1.43 % sequentially. Other income rose by 70.31 % compared to the last quarter, despite an annual decline of -40.81 %. Interest expenses dropped significantly by -5.85 % from the previous quarter, yet the year-over-year increase remains at a moderate 92.43 %. Depreciation costs fell by -20.89 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -15.38 %. Profit before tax grew annually by 10.88 % but saw an increase from the preceding quarter by 36.61 %.
Tax expenses as a percentage of profits increased slightly by 4.95 % compared to last year, with a more notable quarter-on-quarter increase of 1.51 %. Net profit rose by 3.76 % year-on-year but experienced a 33.81 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 3.78 % but a quarterly rise of 33.84 %. In summary, Ambika Cotton Mills Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Ambika Cotton Mills Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -5.79 % year-on-year, however, there was a minor increase of 1.6 % from the previous quarter. Expenses decreased by -10.96 % compared to the previous year, with a decrease of -0.11 % quarter-on-quarter. Operating Profit surged by 34.69 % annually, and saw a 11.49 % increase from the last quarter.
Net Profit showed yearly increase of 3.76 %, and experienced a 33.81 % increase from the previous quarter. Earnings Per Share (EPS) rose by 3.78 % annually, however rose by 33.84 % compared to the last quarter. In essence, while Ambika Cotton Mills Limited exhibits strong annual growth 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.