Shubham Polyspin Reports 37% Jump in Q1 Profit Despite Revenue Dip
Shubham Polyspin Limited, a yarn manufacturer, reported a 37% increase in net profit to ₹26.51 lakhs for Q1 FY24, despite a 16.3% decrease in revenue to ₹1,301.79 lakhs. The company's EPS rose by 37.5% to ₹0.22. Total expenses decreased by 17.2% to ₹1,322.12 lakhs, contributing to improved profitability. The financial results were approved by the Board of Directors on August 14.
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Shubham Polyspin Limited, a manufacturer of yarns and allied products, has reported a significant increase in profit for the quarter ended June 30, despite a decline in revenue. The company's financial results, approved by the Board of Directors on August 14, reveal a mixed performance with improved profitability amid challenging market conditions.
Financial Highlights
| Metric | Current Quarter | Previous Quarter | Change |
|---|---|---|---|
| Net Profit | ₹26.51 lakhs | ₹19.38 lakhs | +37% |
| Revenue | ₹1,301.79 lakhs | ₹1,554.95 lakhs | -16.3% |
| Earnings Per Share (EPS) | ₹0.22 | ₹0.16 | +37.5% |
| Total Expenses | ₹1,322.12 lakhs | ₹1,596.56 lakhs | -17.2% |
Performance Analysis
Shubham Polyspin demonstrated resilience in its financial performance for the quarter. Despite facing a revenue contraction, the company managed to significantly boost its bottom line, indicating effective cost management and operational efficiency.
The company's revenue from operations saw a decline of approximately 16.3% compared to the previous quarter. However, this was offset by a more substantial reduction in total expenses, which fell by about 17.2%. This strategic cost control played a crucial role in enhancing the company's profitability.
Profit Margins and Efficiency
The improvement in net profit, rising from ₹19.38 lakhs to ₹26.51 lakhs, reflects a notable increase in profit margins. This positive trend is further emphasized by the growth in earnings per share, which rose from ₹0.16 to ₹0.22, representing a 37.5% increase.
Market Position
Shubham Polyspin Limited continues to operate in the manufacturing of yarns and allied products sector. The company's ability to increase profitability in a quarter marked by reduced revenue demonstrates its adaptability to market challenges and its focus on operational efficiency.
Conclusion
While the company has shown impressive profit growth, the decline in revenue may warrant attention. The financial results, as reviewed by the Audit Committee and approved by the Board of Directors, provide a transparent view of the company's current financial position. As the textile industry navigates through various market dynamics, Shubham Polyspin's performance in subsequent quarters will be crucial in determining its growth trajectory.
Historical Stock Returns for Shubham Polyspin
| 1 Day | 5 Days | 1 Month | 6 Months | 1 Year | 5 Years |
|---|---|---|---|---|---|
| +2.75% | +4.13% | +9.82% | +107.15% | +40.78% | -11.70% |
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