Share the post "Cravatex ‘s Q1 Report: Revenue Falls by 54.46% YoY"
Highlights
- The presented financial data is Consolidated to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -54.46 % over the year, decrease in net sales/revenue by -49.14 %.
- 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 120.47 %. Marginal increase in other income during this quarter, up by 29.91%.
- Profit over the Year and quarter: Significant improvement in profitability for Cravatex Ltd.. Notable increase of 14.15 % in net profit Year to Year, Cravatex Ltd.’s profitability dropped by -3.97 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 14.02 % Year to Year. EPS decreased by -4.1 % 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. 56.598 Cr | Rs. 50.68 Cr | Rs. 25.776 Cr | -49.14 % | -54.46 % |
| Expenses | Rs. 56.42 Cr | Rs. 52.56 Cr | Rs. 28.1 Cr | -46.54 % | -50.19 % |
| Operating Profit | Rs. 0.18 Cr | Rs. -1.88 Cr | Rs. -2.32 Cr | -23.4 % | -1388.89 % |
| OPM % | 0.32 % | -3.71 % | -9 % | -5.29 % | -9.32 % |
| Other Income | Rs. 1.578 Cr | Rs. 2.678 Cr | Rs. 3.479 Cr | + 29.91 % | + 120.47 % |
| Interest | Rs. 0.08 Cr | Rs. 0.11 Cr | Rs. 0.11 Cr | + 0 % | + 37.5 % |
| Depreciation | Rs. 0.47 Cr | Rs. 0.39 Cr | Rs. 0.34 Cr | -12.82 % | -27.66 % |
| Profit before tax | Rs. 1.21 Cr | Rs. 0.3 Cr | Rs. 0.71 Cr | + 136.67 % | -41.32 % |
| Tax % | 64.78 % | 68 % | 30.76 % | -37.24 % | -34.02 % |
| Net Profit | Rs. 0.42 Cr | Rs. 0.5 Cr | Rs. 0.48 Cr | -4 % | + 14.29 % |
| EPS in Rs | Rs. 1.64 | Rs. 1.95 | Rs. 1.87 | -4.1 % | + 14.02 % |
Today, we’re looking at Cravatex 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 -54.46 %. However, it did see a marginal slip of -49.14 % from the previous quarter. Expenses decreased slightly by -46.54 % quarter-on-quarter, aligning with the annual decline of -50.19 %. Operating profit, while down -1388.89 % compared to last year, faced a quarter-on-quarter dip of -23.4 %, 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 -9.32 %, but a shrinkage of -5.29 % sequentially. Other income rose by 29.91 % compared to the last quarter, despite an annual growth of 120.47 %. Interest expenses surged remarkably by 0 % from the previous quarter, yet the year-over-year increase remains at a moderate 37.5 %. Depreciation costs fell by -12.82 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -27.66 %. Profit before tax declined annually by -41.32 % but saw an increase from the preceding quarter by 136.67 %.
Tax expenses as a percentage of profits decreased slightly by -34.02 % compared to last year, with a more notable quarter-on-quarter decrease of -37.24 %. Net profit rose by 14.29 % year-on-year but witnessed a -4 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 14.02 % but a quarterly fall of -4.1 %. In summary, Cravatex 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. 56.598 Cr | Rs. 50.68 Cr | Rs. 25.776 Cr | -49.14 % | -54.46 % |
| Expenses | Rs. 56.42 Cr | Rs. 52.56 Cr | Rs. 28.1 Cr | -46.54 % | -50.19 % |
| Operating Profit | Rs. 0.18 Cr | Rs. -1.88 Cr | Rs. -2.32 Cr | -23.4 % | -1388.89 % |
| Net Profit | Rs. 0.42 Cr | Rs. 0.5 Cr | Rs. 0.48 Cr | -4 % | + 14.29 % |
| EPS in Rs | Rs. 1.64 | Rs. 1.95 | Rs. 1.87 | -4.1 % | + 14.02 % |
In reviewing Cravatex Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -54.46 % year-on-year, although there was a slight dip of -49.14 % from the previous quarter. Expenses decreased by -50.19 % compared to the previous year, with a decrease of -46.54 % quarter-on-quarter. Operating Profit dropped by -1388.89 % annually, and saw a -23.4 % decrease from the last quarter.
Net Profit showed yearly increase of 14.29 %, and experienced a -4 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 14.02 % annually, however dipped by -4.1 % compared to the last quarter. In essence, while Cravatex Ltd. 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.
54
3-Year Profit
42
5-Year Profit
51
10-Year Profit
157
Current Price
3,820
Market Cap
The financial outlook for the company under BSE code 532406 reveals a significant five-year profit of 42 percents. This marks a notable increase to 54 percents over the last three years, indicating a strong upward trend in the company's financial health during this period. However, it's important to note that recent challenges have impacted the company's performance, leading to a trailing twelve-month loss of 42 percents. This sharp decline in profitability is particularly concerning, as the company has also reported no sales across any analyzed timeframe, suggesting a highly unconventional and perhaps risky operational approach. The company's stock prices mirror this financial volatility, with the stock trading at 112 percents over the past five years but experiencing a dramatic drop to 47 percents within the last year. Over a decade, the stock price was at 49 percents, reflecting long-term concerns regarding the company's stability and future outlook. Such performance poses questions about the sustainability of the business and whether it can rebound from these recent setbacks.
Currently valued at ₹3,820 crore, the company's stock price stands at ₹157. Over the years, it has seen significant fluctuations, with its price ranging from ₹224 / 86.0, a reflection of its sensitivity to market conditions and investor sentiment. The stock's Price-to-Earnings (P/E) ratio, currently at 65.0, suggests that it is highly valued in comparison to its earnings, possibly indicating strong future growth expectations or a high level of investor confidence. The book value per share is ₹8.09, which represents the net asset value of the company per share. The dividend yield of 0.12% provides some return to investors, though it may not be the primary attraction for those investing in the stock. The company's Return on Capital Employed (ROCE) is 47.4%, pointing to efficient use of its capital base to generate profits. The Return on Equity (ROE), at 38.7%, highlights the profitability for shareholders. The company's financial health is further underscored by its very low debt-to-equity ratio of 0.09, signaling conservative financial management. However, the net cash flow is negative at ₹0.86 crore, indicating possible liquidity concerns or heavy investment. The Piotroski score of 8.00 provides a snapshot of its financial stability, while the Graham Number, estimated at ₹21.0, offers an intrinsic value benchmark. With a Price-to-Book (P/B) ratio of 19.4, the stock seems to be trading at a premium relative to its book value, which could signal strong market expectations or overvaluation risks.
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