Ambika Cotton Q1 results, mixed bag with sales up, profit down

Ambika Cotton Mills reported mixed results for the quarter ending March 2024. While net sales grew 10.5 per cent year-on-year to Rs 205.79 crore, net profit dipped 11.25 per cent to Rs 16.09 crore compared to the same period last year.

Revenue growth was driven by higher selling prices, but the company's bottom line was impacted by increased raw material costs and other expenses. EBITDA (earnings before interest, tax, depreciation, and amortization) also declined slightly by 3.22 per cent to Rs 34.21 crore.

Earnings per share (EPS) decreased to Rs 28.10 from Rs 31.67 in March 2023. The company's share price closed at Rs 1,594.05 on the NSE on May 24, 2024.

This mixed performance suggests Ambika Cotton Mills faces challenges in managing costs while capitalizing on rising demand.