Sangam India has disseminated its consolidated financial results for the quarter culminating in September 2023, illustrating a downward drift in several crucial financial indicators when juxtaposed against the analogous quarter in 2022. Here’s an exhaustive elucidation of the disclosed financials together with a demystification of the pertinent terms:
Net Sales
- September 2023: Rs 628.74 crore
- September 2022: Rs 709.32 crore
- Year-over-Year Change: -11.36%
Net Sales denote the chief revenue garnered from the enterprise’s core activities, devoid of any deductions. The YoY diminution in net sales by 11.36% may signify a slump in demand for Sangam India’s products or services, or perhaps a challenging market milieu.
Net Profit
- September 2023: Rs 10.58 crore
- September 2022: Rs 30.33 crore
- Year-over-Year Change: -65.12%
Net Profit epitomizes the remaining income post the deduction of all operational expenses, taxes, and costs from the aggregate revenue. The sharp 65.12% descent could be indicative of soaring operational costs, reduced sales, or a blend of both.
EBITDA
- September 2023: Rs 50.31 crore
- September 2022: Rs 81.76 crore
- Year-over-Year Change: -38.47%
EBITDA (Earnings Before Interest, Taxes, Depreciation, and Amortization) is a financial metric exuding insights into a company’s operational performance by sidelining certain non-operating and non-cash expenses. The significant 38.47% YoY contraction underscores a potential downturn in operational profitability.
Earnings Per Share (EPS)
- September 2023: Rs 2.13
- September 2022: Rs 6.95
- Year-over-Year Change: -69.35%
Earnings Per Share (EPS) represents a segment of a company’s profit allocated to each outstanding share of common stock. A lower EPS often signifies diminished profitability and could impact investor sentiment adversely.
Stock Performance
- Closing Price on October 26, 2023: Rs 291.60 (NSE)
- Six-Month Return: 7.76%
- Twelve-Month Return: 3.81%
The aforementioned stock performance delineates a modest positive sentiment among investors towards Sangam India’s financial standing over the past year, albeit the returns are fairly subdued.
Conclusive Observations
The financial discourse for Q2 2023 unveils some financial headwinds faced by Sangam India, with a pronounced decline across key financial metrics. This could potentially flag concerns among investors and market analysts regarding the firm’s market position and operational efficiency. As Sangam India trudges along the fiscal year, the financial community will be keenly observing its strategic endeavors to ameliorate this downward trend and fortify its market stature.
