Bombay Burmah's Q2 FY24-25 financials show mixed results, MarketsMOJO advises 'Hold' on stock

Bombay Burmah Trading Corporation, a midcap FMCG company, recently announced its financial results for the quarter ending September 2024. The stock call by MarketsMOJO for the company is 'Hold'.

According to the financials, Bombay Burmah's net sales for the quarter were the highest in the last five quarters, standing at Rs 4,760.84 crore. This shows a positive trend in the company's sales performance in the near term.

However, the company's operating profit (PBDIT) for the quarter was the lowest in the last five quarters, at Rs 724.07 crore. This has been a consistent decline in each quarter over the past five quarters, indicating a negative trend in the company's operating profit. The operating profit margin for the quarter was also the lowest in the last five quarters, at 15.21%, showing a deterioration in the company's efficiency.

The profit after tax (PAT) for the quarter was Rs 253.56 crore, which is a decrease of 12.4% compared to the average PAT of the previous four quarters, which was Rs 289.33 crore. This indicates a very negative trend in the company's PAT in the near term.

Another concerning factor is the debtors turnover ratio, which was the lowest in the last five half-yearly periods at 29.34 times. This shows that the company's pace of settling its debtors has slowed down.

Overall, the financial performance of Bombay Burmah for the quarter Q2 FY24-25 has been flat, with a score of 4 out of 15 in the last three months. Investors are advised to hold their stock in the company for now, as per MarketsMOJO's recommendation.