Premco, poor results continues in the series for the company. Dividend declared for quarter also declined to Rs 2 per share during Q3FY24 as against Rs 6 per share declared in Q3FY23. The decline in dividend declared is major concern for me.
During the quarter. while consolidated profit declined by 53% yoy, standalone profit declined by more than 61%. So, India business continue to adversely affected. Even depreciation charge for quarter is almost same last year in standalone business, hence assume that company has not commericalised new plant. When the new capacity would be operational, the company performance is expected to remain lower than normal level of profitability due negative operating leverage.
Overall, no positive take away from the results in my view. Proftiablity in Vietnam and India under pressure, No update on capex commencement, Major drop in Dividend, No attempt from management for NSE listing. Critically evaluating my investment in company.
Disclosure: My view may be biased due to my investment in the company. I may increase/decrease/exit my holding in the company without informing forum. I am not SEBI registered advisor. I am not recommening any investment action in the company. Reader shall do his/her own due diligence/consult financial advisor before making any investment decision.
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