Future Consumer's Q1 Financial Results Raise Concerns, Investors Urged to Monitor Performance

Future Consumer, a microcap company in the FMCG industry, recently declared its financial results for the quarter ending March 2024. The stock has been given a 'not rated' call by MarketsMOJO.

According to the financials, Future Consumer has seen a negative performance in the quarter, with a score of -13 compared to 4 in the previous 3 months. This decline can be attributed to various factors.

One of the major concerns is the Profit Before Tax less Other Income (PBT) which has fallen to Rs -33.56 crore, a decrease of 41.4% from the average PBT of the previous four quarters. This indicates a very negative trend in the near term. Similarly, the Profit After Tax (PAT) has also fallen by 59.7% compared to the average of the previous four quarters. This is a cause for concern as it shows a significant decline in profitability.

Another worrying factor is the increase in interest cost, which has grown by 48.86% quarter on quarter. This suggests that the company has taken on more borrowings, which could impact its financial stability in the long run. The interest cost has also reached its highest in the last five quarters, further highlighting the need for caution.

On a positive note, the company has seen an increase in non-operating income, which has reached its highest in the last five quarters. However, this could be due to income from non-business activities, which may not be sustainable.

Overall, the financial results of Future Consumer for the quarter ending March 2024 have raised concerns about the company's performance. Investors and stakeholders should closely monitor the company's financials in the coming quarters to assess its future prospects.