Highlights
- Sales over the Year and quarter: The company’s sales declined by -27.87 % over the year, decrease in net sales/revenue by -18.83 %.
- 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 241.67 %. Marginal increase in other income during this quarter, up by 259.62%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Davangere Sugar Company Limited. Profit dropped by -46.9 % Year to Year, Davangere Sugar Company Limited’s profitability dropped by -18.9 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -47.25 % Year to Year. EPS decreased by -20 % 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. 88.127 Cr | Rs. 78.313 Cr | Rs. 63.57 Cr | -18.83 % | -27.87 % |
| Expenses | Rs. 69.67 Cr | Rs. 62.39 Cr | Rs. 52.91 Cr | -15.19 % | -24.06 % |
| Operating Profit | Rs. 18.46 Cr | Rs. 15.92 Cr | Rs. 10.66 Cr | -33.04 % | -42.25 % |
| OPM % | 20.95 % | 20.33 % | 16.77 % | -3.56 % | -4.18 % |
| Other Income | Rs. -1.32 Cr | Rs. 0.52 Cr | Rs. 1.87 Cr | + 259.62 % | + 241.67 % |
| Interest | Rs. 3.4 Cr | Rs. 6.64 Cr | Rs. 4.66 Cr | -29.82 % | + 37.06 % |
| Depreciation | Rs. 2.27 Cr | Rs. 2.89 Cr | Rs. 3.28 Cr | + 13.49 % | + 44.49 % |
| Profit before tax | Rs. 11.47 Cr | Rs. 6.91 Cr | Rs. 4.59 Cr | -33.57 % | -59.98 % |
| Tax % | 25.27 % | 18.81 % | 0.98 % | -17.83 % | -24.29 % |
| Net Profit | Rs. 8.57 Cr | Rs. 5.61 Cr | Rs. 4.55 Cr | -18.89 % | -46.91 % |
| EPS in Rs | Rs. 0.91 | Rs. 0.6 | Rs. 0.48 | -20 % | -47.25 % |
Today, we’re looking at Davangere Sugar Company Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -27.87 %. However, it did see a marginal slip of -18.83 % from the previous quarter. Expenses decreased slightly by -15.19 % quarter-on-quarter, aligning with the annual decline of -24.06 %. Operating profit, while down -42.25 % compared to last year, faced a quarter-on-quarter dip of -33.04 %, 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 -4.18 %, but a shrinkage of -3.56 % sequentially. Other income rose by 259.62 % compared to the last quarter, despite an annual growth of 241.67 %. Interest expenses dropped significantly by -29.82 % from the previous quarter, yet the year-over-year increase remains at a moderate 37.06 %. Depreciation costs climbed by 13.49 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 44.49 %. Profit before tax declined annually by -59.98 % but saw a reduction from the preceding quarter by -33.57 %.
Tax expenses as a percentage of profits decreased slightly by -24.29 % compared to last year, with a more notable quarter-on-quarter decrease of -17.83 %. Net profit fell by -46.91 % year-on-year but witnessed a -18.89 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -47.25 % but a quarterly fall of -20 %. In summary, Davangere Sugar Company Limited’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. 88.127 Cr | Rs. 78.313 Cr | Rs. 63.57 Cr | -18.83 % | -27.87 % |
| Expenses | Rs. 69.67 Cr | Rs. 62.39 Cr | Rs. 52.91 Cr | -15.19 % | -24.06 % |
| Operating Profit | Rs. 18.46 Cr | Rs. 15.92 Cr | Rs. 10.66 Cr | -33.04 % | -42.25 % |
| Net Profit | Rs. 8.57 Cr | Rs. 5.61 Cr | Rs. 4.55 Cr | -18.89 % | -46.91 % |
| EPS in Rs | Rs. 0.91 | Rs. 0.6 | Rs. 0.48 | -20 % | -47.25 % |
In reviewing Davangere Sugar Company Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -27.87 % year-on-year, although there was a slight dip of -18.83 % from the previous quarter. Expenses decreased by -24.06 % compared to the previous year, with a decrease of -15.19 % quarter-on-quarter. Operating Profit dropped by -42.25 % annually, and saw a -33.04 % decrease from the last quarter.
Net Profit showed yearly decrease of -46.91 %, and experienced a -18.89 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -47.25 % annually, however dipped by -20 % compared to the last quarter. In essence, while Davangere Sugar Company Limited 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.
