Share the post "Gini Silk Mills ‘s Q1 Report: Profit Decreases by 14.52% YoY"
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 -11.68 % over the year, decrease in net sales/revenue by -24.82 %.
- 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 36.05 %. Marginal decrease of -17.4% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Gini Silk Mills Ltd.. Profit dropped by -15.71 % Year to Year, Gini Silk Mills Ltd.’s profitability dropped by -24.64 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -16.07 % Year to Year. EPS decreased by -24.8 % 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. 9.894 Cr | Rs. 11.623 Cr | Rs. 8.738 Cr | -24.82 % | -11.68 % |
| Expenses | Rs. 9.4 Cr | Rs. 11.46 Cr | Rs. 8.61 Cr | -24.87 % | -8.4 % |
| Operating Profit | Rs. 0.49 Cr | Rs. 0.16 Cr | Rs. 0.13 Cr | -18.75 % | -73.47 % |
| OPM % | 4.95 % | 1.38 % | 1.49 % | + 0.11 % | -3.46 % |
| Other Income | Rs. 0.663 Cr | Rs. 1.092 Cr | Rs. 0.902 Cr | -17.4 % | + 36.05 % |
| Interest | Rs. 0.15 Cr | Rs. 0.25 Cr | Rs. 0.17 Cr | -32 % | + 13.33 % |
| Depreciation | Rs. 0.29 Cr | Rs. 0.36 Cr | Rs. 0.35 Cr | -2.78 % | + 20.69 % |
| Profit before tax | Rs. 0.71 Cr | Rs. 0.64 Cr | Rs. 0.51 Cr | -20.31 % | -28.17 % |
| Tax % | 12.36 % | 8.39 % | 2.33 % | -6.06 % | -10.03 % |
| Net Profit | Rs. 0.62 Cr | Rs. 0.7 Cr | Rs. 0.53 Cr | -24.29 % | -14.52 % |
| EPS in Rs | Rs. 1.12 | Rs. 1.25 | Rs. 0.94 | -24.8 % | -16.07 % |
Today, we’re looking at Gini Silk Mills 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 -11.68 %. However, it did see a marginal slip of -24.82 % from the previous quarter. Expenses decreased slightly by -24.87 % quarter-on-quarter, aligning with the annual decline of -8.4 %. Operating profit, while down -73.47 % compared to last year, faced a quarter-on-quarter dip of -18.75 %, 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 -3.46 %, but an expansion of 0.11 % sequentially. Other income fell by -17.4 % compared to the last quarter, despite an annual growth of 36.05 %. Interest expenses dropped significantly by -32 % from the previous quarter, yet the year-over-year increase remains at a moderate 13.33 %. Depreciation costs fell by -2.78 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 20.69 %. Profit before tax declined annually by -28.17 % but saw a reduction from the preceding quarter by -20.31 %.
Tax expenses as a percentage of profits decreased slightly by -10.03 % compared to last year, with a more notable quarter-on-quarter decrease of -6.06 %. Net profit fell by -14.52 % year-on-year but witnessed a -24.29 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -16.07 % but a quarterly fall of -24.8 %. In summary, Gini Silk Mills 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. 9.894 Cr | Rs. 11.623 Cr | Rs. 8.738 Cr | -24.82 % | -11.68 % |
| Expenses | Rs. 9.4 Cr | Rs. 11.46 Cr | Rs. 8.61 Cr | -24.87 % | -8.4 % |
| Operating Profit | Rs. 0.49 Cr | Rs. 0.16 Cr | Rs. 0.13 Cr | -18.75 % | -73.47 % |
| Net Profit | Rs. 0.62 Cr | Rs. 0.7 Cr | Rs. 0.53 Cr | -24.29 % | -14.52 % |
| EPS in Rs | Rs. 1.12 | Rs. 1.25 | Rs. 0.94 | -24.8 % | -16.07 % |
In reviewing Gini Silk Mills Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -11.68 % year-on-year, although there was a slight dip of -24.82 % from the previous quarter. Expenses decreased by -8.4 % compared to the previous year, with a decrease of -24.87 % quarter-on-quarter. Operating Profit dropped by -73.47 % annually, and saw a -18.75 % decrease from the last quarter.
Net Profit showed yearly decrease of -14.52 %, and experienced a -24.29 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -16.07 % annually, however dipped by -24.8 % compared to the last quarter. In essence, while Gini Silk Mills Ltd. faces strong annual decline 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
176
Current Price
4,272
Market Cap
The company associated with BSE code 532406 presents a financial narrative of mixed fortunes. Over a five-year period, the company achieved a profit of 42 percents, which subsequently rose to 54 percents over the three years that followed. Yet, despite this initial growth, the company now faces a troubling trailing twelve-month (TTM) profit loss of 42 percents. 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 113 percents over the last five years, it has recently dropped to 63 percents, underscoring a rapid decline in market confidence. Over the longer ten-year period, the stock price was at 55 percents, illustrating a pattern of fluctuating performance that could pose risks for potential investors.
The company currently holds a market cap of ₹4,272 crore, with its stock trading at ₹176. Historically, the stock has fluctuated between ₹224 / 86.0, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at 72.7, 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 ₹8.09, which offers insight into the company's intrinsic worth, while its dividend yield of 0.11% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is 47.4%, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is 38.7%, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at 0.09, which is a positive indicator of financial stability. However, the company’s net cash flow of ₹0.86 crore raises concerns about its liquidity position. The Piotroski score of 8.00 reflects the company’s overall financial health, while the Graham Number of ₹21.0 suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of 21.7 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.
