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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 -30.68 % over the year, decrease in net sales/revenue by -19.25 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -5.9 %, Marginal increase in other income during this quarter, up by 125.66%.
- Profit over the Year and quarter: Challenges in sustaining profitability for Rama Steel Tubes Limited. Profit dropped by -16.87 % Year to Year, Rama Steel Tubes Limited’s profitability dropped by -18.87 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -73.33 % Year to Year. EPS decreased by -66.67 % 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. 312.516 Cr | Rs. 268.269 Cr | Rs. 216.635 Cr | -19.25 % | -30.68 % |
| Expenses | Rs. 296.38 Cr | Rs. 254.82 Cr | Rs. 205.22 Cr | -19.46 % | -30.76 % |
| Operating Profit | Rs. 16.14 Cr | Rs. 13.45 Cr | Rs. 11.42 Cr | -15.09 % | -29.24 % |
| OPM % | 5.16 % | 5.01 % | 5.27 % | + 0.26 % | + 0.11 % |
| Other Income | Rs. 1 Cr | Rs. 0.417 Cr | Rs. 0.941 Cr | + 125.66 % | -5.9 % |
| Interest | Rs. 7.19 Cr | Rs. 2.84 Cr | Rs. 3.23 Cr | + 13.73 % | -55.08 % |
| Depreciation | Rs. 1.42 Cr | Rs. 1.45 Cr | Rs. 1.73 Cr | + 19.31 % | + 21.83 % |
| Profit before tax | Rs. 8.53 Cr | Rs. 9.58 Cr | Rs. 7.4 Cr | -22.76 % | -13.25 % |
| Tax % | 24.77 % | 21.26 % | 16.35 % | -4.91 % | -8.42 % |
| Net Profit | Rs. 7.46 Cr | Rs. 7.64 Cr | Rs. 6.2 Cr | -18.85 % | -16.89 % |
| EPS in Rs | Rs. 0.15 | Rs. 0.12 | Rs. 0.04 | -66.67 % | -73.33 % |
Today, we’re looking at Rama Steel Tubes 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 -30.68 %. However, it did see a marginal slip of -19.25 % from the previous quarter. Expenses decreased slightly by -19.46 % quarter-on-quarter, aligning with the annual decline of -30.76 %. Operating profit, while down -29.24 % compared to last year, faced a quarter-on-quarter dip of -15.09 %, signaling a short-term contraction in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 0.11 %, but an expansion of 0.26 % sequentially. Other income rose by 125.66 % compared to the last quarter, despite an annual decline of -5.9 %. Interest expenses surged remarkably by 13.73 % from the previous quarter, yet the year-over-year decrease remains at a moderate -55.08 %. Depreciation costs climbed by 19.31 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 21.83 %. Profit before tax declined annually by -13.25 % but saw a reduction from the preceding quarter by -22.76 %.
Tax expenses as a percentage of profits decreased slightly by -8.42 % compared to last year, with a more notable quarter-on-quarter decrease of -4.91 %. Net profit fell by -16.89 % year-on-year but witnessed a -18.85 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -73.33 % but a quarterly fall of -66.67 %. In summary, Rama Steel Tubes 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. 312.516 Cr | Rs. 268.269 Cr | Rs. 216.635 Cr | -19.25 % | -30.68 % |
| Expenses | Rs. 296.38 Cr | Rs. 254.82 Cr | Rs. 205.22 Cr | -19.46 % | -30.76 % |
| Operating Profit | Rs. 16.14 Cr | Rs. 13.45 Cr | Rs. 11.42 Cr | -15.09 % | -29.24 % |
| Net Profit | Rs. 7.46 Cr | Rs. 7.64 Cr | Rs. 6.2 Cr | -18.85 % | -16.89 % |
| EPS in Rs | Rs. 0.15 | Rs. 0.12 | Rs. 0.04 | -66.67 % | -73.33 % |
In reviewing Rama Steel Tubes Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -30.68 % year-on-year, although there was a slight dip of -19.25 % from the previous quarter. Expenses decreased by -30.76 % compared to the previous year, with a decrease of -19.46 % quarter-on-quarter. Operating Profit dropped by -29.24 % annually, and saw a -15.09 % decrease from the last quarter.
Net Profit showed yearly decrease of -16.89 %, and experienced a -18.85 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -73.33 % annually, however dipped by -66.67 % compared to the last quarter. In essence, while Rama Steel Tubes 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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