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Highlights
- Sales over the Year and quarter: The company’s sales declined by -32.8 % over the year, substantial increase in net sales/revenue by 2.24 %.
- 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 109.29 %. Marginal decrease of -67.92% in other income during this quarter.
- Profit over the Year and quarter: Challenges in sustaining profitability for Rama Steel Tubes Limited. Profit dropped by -34.47 % Year to Year, Rama Steel Tubes Limited’s profitability dropped by -14.29 % Quarter to Quarter.
- EPS over the Year and quarter: EPS declined by -76.00 % Year to Year. EPS decreased by -33.33 % 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. 399.239 Cr | Rs. 262.391 Cr | Rs. 268.269 Cr | + 2.24 % | -32.8 % |
Expenses | Rs. 371.43 Cr | Rs. 244.97 Cr | Rs. 254.82 Cr | + 4.02 % | -31.39 % |
Operating Profit | Rs. 27.81 Cr | Rs. 17.42 Cr | Rs. 13.45 Cr | -22.79 % | -51.64 % |
OPM % | 6.97 % | 6.64 % | 5.01 % | -1.63 % | -1.96 % |
Other Income | Rs. -5.49 Cr | Rs. 1.59 Cr | Rs. 0.51 Cr | -67.92 % | + 109.29 % |
Interest | Rs. 6.62 Cr | Rs. 7.27 Cr | Rs. 2.84 Cr | -60.94 % | -57.1 % |
Depreciation | Rs. 1.25 Cr | Rs. 1.45 Cr | Rs. 1.45 Cr | + 0 % | + 16 % |
Profit before tax | Rs. 14.45 Cr | Rs. 10.29 Cr | Rs. 9.67 Cr | -6.03 % | -33.08 % |
Tax % | 19.05 % | 13.06 % | 21.26 % | + 8.2 % | + 2.21 % |
Net Profit | Rs. 11.66 Cr | Rs. 8.92 Cr | Rs. 7.64 Cr | -14.35 % | -34.48 % |
EPS in Rs | Rs. 0.47 | Rs. 0.18 | Rs. 0.12 | -33.33 % | -74.47 % |
Today, we’re looking at Rama Steel Tubes Limited’s financial performance for the Q4(Mar 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -32.8 %. However, it did see a marginal increase of 2.24 % from the previous quarter. Expenses ticked up slightly by 4.02 % quarter-on-quarter, aligning with the annual decline of -31.39 %. Operating profit, while down -51.64 % compared to last year, faced a quarter-on-quarter dip of -22.79 %, 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 -1.96 %, but a shrinkage of -1.63 % sequentially. Other income fell by -67.92 % compared to the last quarter, despite an annual growth of 109.29 %. Interest expenses dropped significantly by -60.94 % from the previous quarter, yet the year-over-year decrease remains at a moderate -57.1 %. Depreciation costs climbed by 0 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 16 %. Profit before tax declined annually by -33.08 % but saw a reduction from the preceding quarter by -6.03 %.
Tax expenses as a percentage of profits increased slightly by 2.21 % compared to last year, with a more notable quarter-on-quarter increase of 8.2 %. Net profit fell by -34.48 % year-on-year but witnessed a -14.35 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -74.47 % but a quarterly fall of -33.33 %. 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. 399.239 Cr | Rs. 262.391 Cr | Rs. 268.269 Cr | + 2.24 % | -32.8 % |
Expenses | Rs. 371.43 Cr | Rs. 244.97 Cr | Rs. 254.82 Cr | + 4.02 % | -31.39 % |
Operating Profit | Rs. 27.81 Cr | Rs. 17.42 Cr | Rs. 13.45 Cr | -22.79 % | -51.64 % |
Net Profit | Rs. 11.66 Cr | Rs. 8.92 Cr | Rs. 7.64 Cr | -14.35 % | -34.48 % |
EPS in Rs | Rs. 0.47 | Rs. 0.18 | Rs. 0.12 | -33.33 % | -74.47 % |
In reviewing Rama Steel Tubes Limited’s 2024(Q4) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -32.8 % year-on-year, however, there was a minor increase of 2.24 % from the previous quarter. Expenses decreased by -31.39 % compared to the previous year, with a 4.02 % increase quarter-on-quarter. Operating Profit dropped by -51.64 % annually, and saw a -22.79 % decrease from the last quarter.
Net Profit showed yearly decrease of -34.48 %, and experienced a -14.35 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -74.47 % annually, however dipped by -33.33 % 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.