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Jerash Holdings (US) Inc. (JRSH-1.08%) has submitted its 10-Q filing for the quarterly period ended December 31, 2024.
The filing reports a revenue increase to $35.4 million for the three months ended December 31, 2024, compared to $27.5 million for the same period in the previous year. This increase is attributed to higher shipments to major customers in the U.S.
Cost of goods sold rose to $30.0 million from $23.1 million in the prior year, representing 85% of sales compared to 84% previously. The increase in cost ratio is due to higher import costs amid geopolitical turmoil.
Gross profit for the quarter was $5.4 million, up from $4.5 million in the previous year, with a gross margin of 15%, slightly down from 16% due to increased logistic costs.
Selling, general, and administrative expenses increased to $4.2 million from $3.8 million, primarily due to higher export logistic costs and increased stock-based compensation expenses.
Net income for the quarter was $6,000, down from $232,000 in the previous year. The decrease is mainly due to increased stock-based compensation expenses and a tax provision adjustment.
The company reported a net loss of $695,000 for the nine months ended December 31, 2024, compared to a net income of $1.1 million in the previous year. The loss is attributed to higher logistics and production costs.
Jerash Holdings' cash position improved to $13.2 million as of December 31, 2024, from $12.4 million at the end of March 2024, mainly due to increased sales and short-term bank financing.
The company's current ratio was 3.1 to 1 as of December 31, 2024, with current assets of $51.1 million and current liabilities of $16.3 million.
Jerash Holdings anticipates capital expenditures of $2.2 million for the fiscal year ending March 31, 2025, and $8.8 million for the fiscal year ending March 31, 2026, to enhance production capacity.
The company identified material weaknesses in its internal controls over financial reporting, specifically related to income taxes and reconciliation of account level balances.
Jerash Holdings plans to address these weaknesses by enhancing communication with advisors and improving processes related to financial reporting and information technology controls.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Jerash Holdings (US) Inc. quarterly 10-Q report dated February 12, 2025. To report an error, please email earnings@qz.com.