Latest Quarterly Result Nelco Ltd’s Quarterly Result and Earnings Report for Q4(Mar 2024) : Key Metrics and Growth Analysis

Nelco Ltd’s Quarterly Result and Earnings Report for Q4(Mar 2024) : Key Metrics and Growth Analysis

Highlights

  • Sales over the Year and quarter: The company’s sales declined by -0.45 % over the year, decrease in net sales/revenue by -1.96 %.
  • 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 3.53 %. Marginal decrease of -22.12% in other income during this quarter.
  • Profit over the Year and quarter: Significant improvement in profitability for Nelco Ltd. Notable increase of 7.77 % in net profit Year to Year, Nelco Ltd’s profitability dropped by -0.81 % Quarter to Quarter.
  • EPS over the Year and quarter: EPS increased by 7.66 % Year to Year. EPS decreased by -0.74 % in previous quarter. Analysis needed for shareholder value.

The comprehensive analytics outlining the performance and outlook of Nelco Ltd”s stock. This analysis encompasses various metrics including stock performance, investor sentiment, market trends, future outlook, risk factors, investment opportunities, long-term strategy, dividend policy, analyst insights, and the overall risk-reward profile. These insights aim to provide investors with a holistic understanding of the company”s stock, enabling informed decision-making and strategic investment planning.

Metrics Previous Year Previous Quarter Current Quarter Quarter to Quarter Difference Year to Year Difference
Sales Rs. 81.98 Cr Rs. 83.24 Cr Rs. 81.61 Cr -1.96 % -0.45 %
Expenses Rs. 65.16 Cr Rs. 66.92 Cr Rs. 66.89 Cr -0.04 % + 2.66 %
Operating Profit Rs. 16.82 Cr Rs. 16.32 Cr Rs. 14.72 Cr -9.8 % -12.49 %
OPM % 20.52 % 19.61 % 18.04 % -1.57 % -2.48 %
Other Income Rs. 0.85 Cr Rs. 1.13 Cr Rs. 0.88 Cr -22.12 % + 3.53 %
Interest Rs. 2.07 Cr Rs. 1.91 Cr Rs. 1.44 Cr -24.61 % -30.43 %
Depreciation Rs. 7.95 Cr Rs. 5.85 Cr Rs. 5.95 Cr + 1.71 % -25.16 %
Profit before tax Rs. 7.65 Cr Rs. 9.69 Cr Rs. 8.21 Cr -15.27 % + 7.32 %
Tax % 26.01 % 37.66 % 26.18 % -11.48 % + 0.17 %
Net Profit Rs. 5.66 Cr Rs. 6.15 Cr Rs. 6.1 Cr -0.81 % + 7.77 %
EPS in Rs Rs. 2.48 Rs. 2.69 Rs. 2.67 -0.74 % + 7.66 %


Today, we’re looking at Nelco Ltd’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -0.45 %. However, it did see a marginal slip of -1.96 % from the previous quarter. Expenses decreased slightly by -0.04 % quarter-on-quarter, aligning with the annual rise of 2.66 %. Operating profit, while down -12.49 % compared to last year, faced a quarter-on-quarter dip of -9.8 %, 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 -2.48 %, but a shrinkage of -1.57 % sequentially. Other income fell by -22.12 % compared to the last quarter, despite an annual growth of 3.53 %. Interest expenses dropped significantly by -24.61 % from the previous quarter, yet the year-over-year decrease remains at a moderate -30.43 %. Depreciation costs climbed by 1.71 % quarter-on-quarter, yet on an annual scale, they experienced a reduction of -25.16 %. Profit before tax grew annually by 7.32 % but saw a reduction from the preceding quarter by -15.27 %.
Tax expenses as a percentage of profits increased slightly by 0.17 % compared to last year, with a more notable quarter-on-quarter decrease of -11.48 %. Net profit rose by 7.77 % year-on-year but witnessed a -0.81 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual uptick of 7.66 % but a quarterly fall of -0.74 %. In summary, Nelco 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. 81.98 Cr Rs. 83.24 Cr Rs. 81.61 Cr -1.96 % -0.45 %
Expenses Rs. 65.16 Cr Rs. 66.92 Cr Rs. 66.89 Cr -0.04 % + 2.66 %
Operating Profit Rs. 16.82 Cr Rs. 16.32 Cr Rs. 14.72 Cr -9.8 % -12.49 %
Net Profit Rs. 5.66 Cr Rs. 6.15 Cr Rs. 6.1 Cr -0.81 % + 7.77 %
EPS in Rs Rs. 2.48 Rs. 2.69 Rs. 2.67 -0.74 % + 7.66 %


In reviewing Nelco Ltd’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -0.45 % year-on-year, although there was a slight dip of -1.96 % from the previous quarter. Expenses rose by 2.66 % compared to the previous year, with a decrease of -0.04 % quarter-on-quarter. Operating Profit dropped by -12.49 % annually, and saw a -9.8 % decrease from the last quarter.
Net Profit showed yearly increase of 7.77 %, and experienced a -0.81 % decrease from the previous quarter. Earnings Per Share (EPS) rose by 7.66 % annually, however dipped by -0.74 % compared to the last quarter. In essence, while Nelco Ltd exhibits strong annual growth 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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