Godfrey Phillips India's Q2 FY25 financial results show mixed performance

Godfrey Phillips India, a leading player in the cigarettes and tobacco industry, recently announced its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

The financial performance of Godfrey Phillips for the quarter Q2 FY24-25 has remained flat, with a score of 4 out of 10 in the last three months. However, there are some positive trends seen in the company’s financials.

In terms of net sales, the company recorded its highest figure in the last five quarters at Rs 1,383.98 crore, indicating a positive trend in the near term. The operating profit (PBDIT) also saw a positive trend, reaching its highest at Rs 271.81 crore in the last five quarters. Similarly, the profit before tax less other income (PBT) also showed a positive trend, reaching its highest at Rs 235.53 crore in the last five quarters. This figure has also grown at a rate of 30.47% year on year, indicating a positive trend in the near term. The profit after tax (PAT) has also shown a growth of 22.9% year on year, reaching Rs 248.33 crore in the quarter.

The company’s earnings per share (EPS) have also been on the rise, reaching its highest at Rs 47.76 in the last five quarters. This indicates that the company has been able to create higher earnings for its shareholders.

However, there are some areas where Godfrey Phillips needs to improve. The inventory turnover ratio for the half-yearly period has been the lowest at 2.75 times, and it has fallen in each of the last five half-yearly periods. This indicates that the company’s pace of selling inventory has slowed down. The operating cash flow for the last three years has also been the lowest at Rs 290.24 crore, indicating a decline in the company’s cash revenues from business operations. The debtors turnover ratio for the half-yearly period has also been the lowest at 11.12 times, indicating a slowdown in the company’s pace of settling its debtors.

Overall, Godfrey Phillips India has shown a mixed performance in the quarter ending September 2024. While there are some positive trends in the company’s financials, there are also areas that need improvement. Investors are advised to hold their position in the company’s stock and keep a close eye on its future performance.