CCL Products (India) Reports Mixed Performance in Q2 FY25, Highest Operating Profit and PAT Growth

CCL Products (India), a midcap company in the tea/coffee industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financials, CCL Products has seen a flat performance in the second quarter of FY24-25, with a score of -1 compared to 4 in the previous quarter. However, there are some positive aspects to the company’s financials. The operating profit (PBDIT) for the quarter was the highest at Rs 137.08 crore and has been growing consistently in the last five quarters. The profit after tax (PAT) also saw a growth in each quarter, with the highest being Rs 73.95 crore in the current quarter. The net sales for the nine-month period have also shown a growth of 25.56% year on year, indicating a positive trend in sales.

The company’s operating profit margin for the quarter was the highest in the last five quarters at 18.57%, showing an improvement in efficiency. The profit before tax (PBT) has also been consistently increasing in the last five quarters, with the highest being Rs 86.77 crore in the current quarter. This has resulted in a higher earnings per share (EPS) of Rs 5.56, indicating a profitable quarter for the company.

However, there are some areas of concern for CCL Products. The debt-equity ratio for the half-yearly period was the highest in the last five periods, indicating that the company is borrowing more to fund its operations. This could potentially lead to a stressed liquidity situation. The operating cash flow for the last three years has also been decreasing, which could be a cause for concern. Additionally, the interest cost for the quarter was the highest in the last five quarters and has increased by 24.23% compared to the previous quarter, indicating increased borrowings.

Overall, CCL Products has shown a mixed performance in the current quarter, with some positive and negative aspects. Investors are advised to hold their position in the stock and keep a close eye on the company’s financials in the coming quarters.