Sheela Foam ‘s Q2 Report: Profit Decreases by 78.97% YoY

The comprehensive analytics outlining the performance and outlook of Sheela Foam Limited‘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.

Today, we’re looking at Sheela Foam Limited’s financial performance for the Q2(Sep 2024-25).Starting with the top line, the company reported a robust year-over-year sales growth of 32.54 %. However, it did see a marginal increase of 0.37 % from the previous quarter. Expenses decreased slightly by -0.86 % quarter-on-quarter, aligning with the annual rise of 35.85 %. Operating profit, while up 5.05 % compared to last year, faced a quarter-on-quarter increase of 15.76 %, 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 -2.24 %, but an expansion of 1.13 % sequentially. Other income fell by -47.87 % compared to the last quarter, despite an annual growth of 30.65 %. Interest expenses surged remarkably by 0.18 % from the previous quarter, yet the year-over-year increase remains at a moderate 230.76 %. Depreciation costs climbed by 21.16 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 118.78 %. Profit before tax declined annually by -58.27 % but saw a reduction from the preceding quarter by -53.05 %.
Tax expenses as a percentage of profits increased slightly by 37.02 % compared to last year, with a more notable quarter-on-quarter increase of 50.48 %. Net profit fell by -78.97 % year-on-year but witnessed a -80 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -79.91 % but a quarterly fall of -78.72 %. In summary, Sheela Foam Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Sheela Foam Limited’s 2024-25(Q2) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales saw a robust 32.54 % year-on-year growth, however, there was a minor increase of 0.37 % from the previous quarter. Expenses rose by 35.85 % compared to the previous year, with a decrease of -0.86 % quarter-on-quarter. Operating Profit surged by 5.05 % annually, and saw a 15.76 % increase from the last quarter.
Net Profit showed yearly decrease of -78.97 %, and experienced a -80 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -79.91 % annually, however dipped by -78.72 % compared to the last quarter. In essence, while Sheela Foam 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.