Dabur India's Q4 Financial Results Show Negative Performance, Decline in PBT and PAT

Dabur India, a leading FMCG company in India, has recently declared its financial results for the quarter ended March 2024. The company has seen a negative performance in this quarter, with a score of -11 compared to -2 in the previous quarter.

One of the major factors contributing to this decline is the decrease in Profit Before Tax (PBT) and Profit After Tax (PAT). The PBT for this quarter was Rs 323.81 crore, which is a significant decrease of 29.1% compared to the average PBT of the previous four quarters. Similarly, the PAT for this quarter was Rs 349.53 crore, a decrease of 22.1% compared to the average PAT of the previous four quarters.

Another concerning aspect is the increase in interest cost, which has grown by 36.76% in the last half-yearly period. This indicates that the company has taken on more borrowings, which could have a negative impact on its financial health.

The net sales for this quarter also saw a decline of 8.2% compared to the average net sales of the previous four quarters. This negative trend in sales is a cause for concern for the company.

It is worth noting that Dabur India has seen a significant increase in non-operating income, with the highest amount of Rs 128.85 crore in the last five quarters. However, this increase may not be sustainable as it is from non-business activities.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Dabur India's stock. Investors should carefully consider these factors before making any investment decisions.