Universal Starch-Chem Allied ‘s Q1 Report: Profit Decreases by 65.97% YoY

The comprehensive analytics outlining the performance and outlook of Universal Starch-Chem Allied 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.

Today, we’re looking at Universal Starch-Chem Allied Ltd.’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -1.98 %. However, it did see a marginal slip of -8.12 % from the previous quarter. Expenses decreased slightly by -7.09 % quarter-on-quarter, aligning with the annual decline of -1.06 %. Operating profit, while down -19.58 % compared to last year, faced a quarter-on-quarter dip of -27.3 %, 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 -0.88 %, but a shrinkage of -1.06 % sequentially. Other income fell by -82.25 % compared to the last quarter, despite an annual growth of 15.1 %. Interest expenses surged remarkably by 6.67 % from the previous quarter, yet the year-over-year increase remains at a moderate 26.55 %. Depreciation costs climbed by 0.68 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 6.47 %. Profit before tax declined annually by -47.78 % but saw a reduction from the preceding quarter by -65.28 %.
Tax expenses as a percentage of profits increased slightly by 15.12 % compared to last year, with a more notable quarter-on-quarter increase of 4.77 %. Net profit fell by -65.97 % year-on-year but witnessed a -67.41 % contraction from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -65.82 % but a quarterly fall of -83.66 %. In summary, Universal Starch-Chem Allied Ltd.’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.

In reviewing Universal Starch-Chem Allied Ltd.’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -1.98 % year-on-year, although there was a slight dip of -8.12 % from the previous quarter. Expenses decreased by -1.06 % compared to the previous year, with a decrease of -7.09 % quarter-on-quarter. Operating Profit dropped by -19.58 % annually, and saw a -27.3 % decrease from the last quarter.
Net Profit showed yearly decrease of -65.97 %, and experienced a -67.41 % decrease from the previous quarter. Earnings Per Share (EPS) fell by -65.82 % annually, however dipped by -83.66 % compared to the last quarter. In essence, while Universal Starch-Chem Allied Ltd. 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.