Sheetal Cool Products (NSE: SCPL) shares are down 13% today. With nothing that this is absolutely nothing at all to do with SciPlay (NASDAQ: SCPL). Nothing at all. Sheetal is a manufacturer of ice creams and milk products in India: “Sheetal Cool Products Limited is an India-based company that is engaged in the business of manufacturing of ice cream, milk and milk products, namkeen, bakery and sweet products. The Company’s businesses include Sheetal Ice Cream, Sheetal Milk Products, Sheetal Frozen Foods, J’adore Ice Cream and Sheetal Foods. The Company operates through two segments: Milk and Milk Products, and Namkeen Products.”
Sheetal shares have been reasonably well thought of recently: “Most readers would already be aware that Sheetal Cool Products' (NSE:SCPL) stock increased significantly by 14% over the past week. Given that the market rewards strong financials in the long-term, we wonder if that is the case in this instance. Specifically, we decided to study Sheetal Cool Products' ROE in this article.” Well, that was a month back. And now we get the actual results which aren’t so happy.
Sheetal Cool Products share price from Google Finance
The cause of that slump is indeed those results: “Reported Standalone quarterly numbers for Sheetal Cool Products are: Net Sales at Rs 70.17 crore in September 2023 down 27.8% from Rs. 97.19 crore in September 2022. Quarterly Net Profit at Rs. 2.92 crore in September 2023 down 53.21% from Rs. 6.25 crore in September 2022. EBITDA stands at Rs. 8.60 crore in September 2023 down 30.53% from Rs. 12.38 crore in September 2022.”
That all makes logical sense, if sales are down - but costs won’t be down as much as revenues - then profit and EBITDA will also be down by more than sales have fallen. We get the full corporate announcement here. Sadly, what we don't gain as part of that is the management discussion of why this happened. So we know what has happened, but as we don’t know why then we can’t make any judgements about when this might turn around. Which does make trying to trade off this news somewhat difficult.
