Hindustan Foods' Q3 financials show growth in sales, but concerns over debt and profits

Hindustan Foods, a midcap FMCG company, recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

In the last three months, Hindustan Foods has seen a flat financial performance with a score of -2, compared to 4 in the previous quarter. However, there are some positive aspects to the company's financials.

According to the Sep 2024 financials, Hindustan Foods has recorded its highest net sales of Rs 883.20 crore in the last five quarters, with a consistent growth trend. This indicates a positive sales trend in the near term. The company's cash and cash equivalents have also shown improvement, with the highest amount of Rs 70.66 crore in the last six half yearly periods.

On the other hand, there are some areas of concern for Hindustan Foods. The company's operating profit to interest ratio has decreased to 3.36 times in the last five quarters, indicating a deteriorating ability to manage interest payments. The interest cost has also increased by 22.56% in the last half yearly period, suggesting a rise in borrowings. Additionally, the company's profit after tax (PAT) has fallen by -5.3% compared to the average PAT of the previous four quarters. The debtors turnover ratio has also decreased to 14.34 times, indicating a slower pace of settling debts.

Overall, Hindustan Foods' financial performance for the quarter ending September 2024 has been mixed. While there are some positive aspects, there are also areas of concern that the company needs to address. Investors are advised to hold their positions in the stock, as recommended by MarketsMOJO.