Honasa Consumer's Q2 FY25 Financial Results Show Mixed Performance, Investors Beware

Honasa Consumer, a midcap FMCG company, recently declared its financial results for the quarter ending September 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financials, Honasa Consumer has seen a negative performance in the quarter, with a score of -13 compared to 22 in the previous quarter. However, there are some positive aspects to the company’s financials. The company has generated the highest operating cash flow of Rs 235.34 crore in the last three years, indicating strong cash revenues from business operations.

On the other hand, there are some areas that are not working in favor of Honasa Consumer. The company’s profit before tax less other income (PBT) for the quarter has fallen by -261.8% compared to the average PBT of the previous four quarters. The profit after tax (PAT) has also seen a decline of -158.9% compared to the average PAT of the previous four quarters. The net sales for the quarter have also decreased by -8.1% compared to the average net sales of the previous four quarters.

The company’s operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, and the operating profit margin has also decreased to -6.65%. This indicates a decline in the company’s efficiency. The earnings per share (EPS) for the quarter are also at its lowest in the last five quarters, showing a decline in profitability and lower earnings for shareholders.

On a positive note, the company’s non-operating income has increased, with the highest being Rs 20.02 crore in the last five quarters. However, this increase may not be sustainable as it comes from non-business activities.

Overall, Honasa Consumer’s financial performance for the quarter ending September 2024 has been negative, with some areas of concern. Investors should carefully consider these factors before making any investment decisions.