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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 -19.66 % over the year, decrease in net sales/revenue by -9.14 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -90.58 %, Marginal decrease of -60.48% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Megastar Foods Limited. Profit dropped by -79.24 % Year to Year, Megastar Foods Limited’s profitability dropped by -49.3 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -79.33 % Year to Year. EPS decreased by -48.19 % 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. 70.853 Cr | Rs. 62.645 Cr | Rs. 56.922 Cr | -9.14 % | -19.66 % |
| Expenses | Rs. 66.54 Cr | Rs. 60.61 Cr | Rs. 54.99 Cr | -9.27 % | -17.36 % |
| Operating Profit | Rs. 4.31 Cr | Rs. 2.04 Cr | Rs. 1.93 Cr | -5.39 % | -55.22 % |
| OPM % | 6.08 % | 3.26 % | 3.39 % | + 0.13 % | -2.69 % |
| Other Income | Rs. 0.701 Cr | Rs. 0.167 Cr | Rs. 0.066 Cr | -60.48 % | -90.58 % |
| Interest | Rs. 1.66 Cr | Rs. 0.42 Cr | Rs. 0.6 Cr | + 42.86 % | -63.86 % |
| Depreciation | Rs. 0.61 Cr | Rs. 0.67 Cr | Rs. 0.82 Cr | + 22.39 % | + 34.43 % |
| Profit before tax | Rs. 2.74 Cr | Rs. 1.12 Cr | Rs. 0.58 Cr | -48.21 % | -78.83 % |
| Tax % | 24.13 % | 23.08 % | 25.39 % | + 2.31 % | + 1.26 % |
| Net Profit | Rs. 2.08 Cr | Rs. 0.85 Cr | Rs. 0.43 Cr | -49.41 % | -79.33 % |
| EPS in Rs | Rs. 2.08 | Rs. 0.83 | Rs. 0.43 | -48.19 % | -79.33 % |
Today, we’re looking at Megastar Foods 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 -19.66 %. However, it did see a marginal slip of -9.14 % from the previous quarter. Expenses decreased slightly by -9.27 % quarter-on-quarter, aligning with the annual decline of -17.36 %. Operating profit, while down -55.22 % compared to last year, faced a quarter-on-quarter dip of -5.39 %, 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 -2.69 %, but an expansion of 0.13 % sequentially. Other income fell by -60.48 % compared to the last quarter, despite an annual decline of -90.58 %. Interest expenses surged remarkably by 42.86 % from the previous quarter, yet the year-over-year decrease remains at a moderate -63.86 %. Depreciation costs climbed by 22.39 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 34.43 %. Profit before tax declined annually by -78.83 % but saw a reduction from the preceding quarter by -48.21 %.
Tax expenses as a percentage of profits increased slightly by 1.26 % compared to last year, with a more notable quarter-on-quarter increase of 2.31 %. Net profit fell by -79.33 % year-on-year but witnessed a -49.41 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -79.33 % but a quarterly fall of -48.19 %. In summary, Megastar Foods 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. 70.853 Cr | Rs. 62.645 Cr | Rs. 56.922 Cr | -9.14 % | -19.66 % |
| Expenses | Rs. 66.54 Cr | Rs. 60.61 Cr | Rs. 54.99 Cr | -9.27 % | -17.36 % |
| Operating Profit | Rs. 4.31 Cr | Rs. 2.04 Cr | Rs. 1.93 Cr | -5.39 % | -55.22 % |
| Net Profit | Rs. 2.08 Cr | Rs. 0.85 Cr | Rs. 0.43 Cr | -49.41 % | -79.33 % |
| EPS in Rs | Rs. 2.08 | Rs. 0.83 | Rs. 0.43 | -48.19 % | -79.33 % |
In reviewing Megastar Foods Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -19.66 % year-on-year, although there was a slight dip of -9.14 % from the previous quarter. Expenses decreased by -17.36 % compared to the previous year, with a decrease of -9.27 % quarter-on-quarter. Operating Profit dropped by -55.22 % annually, and saw a -5.39 % decrease from the last quarter.
Net Profit showed yearly decrease of -79.33 %, and experienced a -49.41 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -79.33 % annually, however dipped by -48.19 % compared to the last quarter. In essence, while Megastar Foods 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.
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