Godrej Agrovet's Q2 FY24-25 financials show mixed results, with positive PAT growth but increasing interest costs and declining liquidity.

Godrej Agrovet, a midcap FMCG company, has recently declared its financial results for the quarter ending September 2024. According to the latest report, the company has seen a negative financial performance in Q2 FY24-25, with a score of -7 compared to 10 in the last 3 months.

However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the nine-month period has grown by 26.01% year on year, indicating a positive trend in the near term.

On the other hand, there are some areas of concern for Godrej Agrovet. The interest cost for the quarter has increased by 31.75% quarter on quarter, which could signify increased borrowings. The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters.

Moreover, the company's cash and cash equivalents have reached a low of Rs 12.26 crore in the last six half-yearly periods, indicating a deteriorating short-term liquidity situation. The Debt-Equity ratio has also reached its highest in the last five half-yearly periods, suggesting that the company is borrowing more to fund its operations, which could lead to a stressed liquidity situation.

It is worth noting that the company's non-operating income has increased in the last five quarters, but this may not be sustainable as it comes from non-business activities.

MarketsMOJO has given a 'Hold' call for Godrej Agrovet's stock, based on its financial performance in the quarter ending September 2024. Investors are advised to carefully consider these factors before making any investment decisions.