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Share the post "KGDenim ‘s Q2 Update: Profit Falls by 99.84% Year-on-Year"
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 -77.59 % over the year, decrease in net sales/revenue by -50.26 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -96.25 %, Marginal decrease of -99.85% in other income during this quarter.
- Profit over the Year and quarter: Significant improvement in profitability for K.G.Denim Ltd. Notable increase of 99.84 % in net profit Year to Year, K.G.Denim Ltd’s profitability increased by 367.56 % in this quarter.
- EPS over the Year and quarter: EPS increased by 131.37 % Year to Year. EPS increased by 362.75 % in previous quarter. Positive impact on shareholders.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 67.12 Cr | Rs. 30.24 Cr | Rs. 15.04 Cr | -50.26 % | -77.59 % |
| Expenses | Rs. 66.79 Cr | Rs. 44.91 Cr | Rs. 27.67 Cr | -38.39 % | -58.57 % |
| Operating Profit | Rs. 0.33 Cr | Rs. -14.67 Cr | Rs. -12.63 Cr | + 13.91 % | -3927.27 % |
| OPM % | 0.49 % | -48.51 % | -83.98 % | -35.47 % | -84.47 % |
| Other Income | Rs. 0.8 Cr | Rs. 20.44 Cr | Rs. 0.03 Cr | -99.85 % | -96.25 % |
| Interest | Rs. 5.47 Cr | Rs. 5.63 Cr | Rs. 0.16 Cr | -97.16 % | -97.07 % |
| Depreciation | Rs. 3.85 Cr | Rs. 3.66 Cr | Rs. 3.66 Cr | + 0 % | -4.94 % |
| Profit before tax | Rs. -8.19 Cr | Rs. -3.52 Cr | Rs. -16.42 Cr | -366.48 % | -100.49 % |
| Tax % | -25.15 % | -25.57 % | -25.4 % | + 0.17 % | -0.25 % |
| Net Profit | Rs. -6.13 Cr | Rs. -2.62 Cr | Rs. -12.25 Cr | -367.56 % | -99.84 % |
| EPS in Rs | Rs. -2.04 | Rs. -1.02 | Rs. -4.72 | -362.75 % | -131.37 % |
Today, we’re looking at K.G.Denim 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 -77.59 %. However, it did see a marginal slip of -50.26 % from the previous quarter. Expenses decreased slightly by -38.39 % quarter-on-quarter, aligning with the annual decline of -58.57 %. Operating profit, while down -3927.27 % compared to last year, faced a quarter-on-quarter increase of 13.91 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % contradicts this narrative, showing weakness on an annual basis with a decrease of -84.47 %, but a shrinkage of -35.47 % sequentially. Other income fell by -99.85 % compared to the last quarter, despite an annual decline of -96.25 %. Interest expenses dropped significantly by -97.16 % from the previous quarter, yet the year-over-year decrease remains at a moderate -97.07 %. Depreciation costs climbed by 0 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -4.94 %. Profit before tax declined annually by -100.49 % but saw a reduction from the preceding quarter by -366.48 %.
Tax expenses as a percentage of profits decreased slightly by -0.25 % compared to last year, with a more notable quarter-on-quarter increase of 0.17 %. Net profit fell by -99.84 % year-on-year but witnessed a -367.56 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -131.37 % but a quarterly fall of -362.75 %. In summary, K.G.Denim 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. 67.12 Cr | Rs. 30.24 Cr | Rs. 15.04 Cr | -50.26 % | -77.59 % |
| Expenses | Rs. 66.79 Cr | Rs. 44.91 Cr | Rs. 27.67 Cr | -38.39 % | -58.57 % |
| Operating Profit | Rs. 0.33 Cr | Rs. -14.67 Cr | Rs. -12.63 Cr | + 13.91 % | -3927.27 % |
| Net Profit | Rs. -6.13 Cr | Rs. -2.62 Cr | Rs. -12.25 Cr | -367.56 % | -99.84 % |
| EPS in Rs | Rs. -2.04 | Rs. -1.02 | Rs. -4.72 | -362.75 % | -131.37 % |
In reviewing K.G.Denim Ltd’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -77.59 % year-on-year, although there was a slight dip of -50.26 % from the previous quarter. Expenses decreased by -58.57 % compared to the previous year, with a decrease of -38.39 % quarter-on-quarter. Operating Profit dropped by -3927.27 % annually, and saw a 13.91 % increase from the last quarter.
Net Profit showed yearly decrease of -99.84 %, and experienced a -367.56 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -131.37 % annually, however dipped by -362.75 % compared to the last quarter. In essence, while K.G.Denim 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.
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