Devyani International's Q2 FY25 financials show mixed performance, with positive sales growth but concerning PBT and PAT.
Devyani International, a midcap company in the lifestyle industry, recently announced its financial results for the quarter ending September 2024. The company has received a ‘Sell’ call from MarketsMOJO, indicating a negative outlook for the stock.
According to the financial report, Devyani International has seen a decline in its financial performance for the quarter, with a score of -6 compared to -1 in the previous quarter. However, there are some positive aspects to the company’s performance based on the September 2024 financials.
The net sales for the quarter were the highest at Rs 1,222.16 crore and have shown growth in each of the last five quarters. This indicates a very positive trend in the near term for the company’s sales. Additionally, the net sales have grown by 24.3% over the average net sales of the previous four quarters, which is a positive sign for the company.
On the other hand, there are some areas that are not working in favor of Devyani International based on the September 2024 financials. The profit before tax (PBT) less other income has fallen by -16566.7% compared to the average PBT of the previous four quarters. This indicates a very negative trend in the near term for the company’s PBT. Similarly, the profit after tax (PAT) has also fallen by -99.9% compared to the average PAT of the previous four quarters, which is a cause for concern.
Another concerning aspect is the rise in interest cost, which has grown by 22.31% over the previous half-yearly period. This signifies increased borrowings for the company, which could have a negative impact on its financials in the long run.
Overall, the financial results for the quarter ending September 2024 for Devyani International show a mixed performance. While there are some positive aspects, there are also some areas of concern that the company needs to address in order to improve its financial standing. Investors should carefully consider these factors before making any decisions regarding the stock.
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