Foods & Inns Reports Negative Financial Performance, But Shows Positive Trends in Net Sales and Operating Profit

Foods & Inns, a microcap company in the FMCG industry, recently declared its financial results for the quarter ending March 2024. According to the latest report, the company has seen a negative financial performance with a score of -15, which has improved from -16 in the last three months.

Despite the overall negative performance, there are some positive aspects to note. The company's net sales for the quarter were the highest in the last five quarters at Rs 345.22 crore, showing a positive trend in the near term. Additionally, the net sales have grown by 37.0% over the average net sales of the previous four quarters, indicating a positive trend in the near term.

The operating profit (PBDIT) for the quarter was also the highest in the last five quarters at Rs 37.78 crore, with a positive trend in the near term. However, there are some areas that are not working in favor of Foods & Inns. The profit after tax (PAT) for the quarter has fallen by -55.2% over the average PAT of the previous four quarters, and the interest cost has increased by 59.75% quarter on quarter, indicating increased borrowings.

Moreover, the non-operating income for the quarter was the highest in the last five quarters at Rs 2.82 crore, but this increase may not be sustainable as it comes from non-business activities. Based on these financial results, MarketsMOJO has given a 'Sell' call for Foods & Inns' stock.