Jubilant Foodworks Reports Flat Performance in Q2 FY25, MarketsMOJO Gives 'Hold' Call

Jubilant Foodworks, a leading player in the lifestyle industry, has recently announced its financial results for the quarter ending September 2024. The company has reported a flat performance for the quarter, with a score of 2 out of 5, showing a slight improvement from the previous quarter.

According to the financials, Jubilant Foodworks has seen a positive trend in its net sales, with the highest quarterly sales of Rs 1,954.72 crore and a growth rate of 25% over the average net sales of the previous four quarters. The operating profit (PBDIT) has also shown a positive trend, with the highest quarterly profit of Rs 398.58 crore and a growth rate in each of the last five quarters.

However, there are some areas that need improvement for Jubilant Foodworks. The interest cost has increased by 54.29% over the previous half-yearly period, indicating a rise in borrowings. The profit before tax (PBT) has also shown a negative trend, with a decrease of 16.1% over the average PBT of the previous four quarters. The debt-equity ratio is at its highest in the last five half-yearly periods, indicating a higher reliance on borrowings for funding operations. Additionally, the company’s non-operating income has increased, but it may not be sustainable in the long run.

MarketsMOJO has given a ‘Hold’ call for Jubilant Foodworks’ stock, considering its financial performance in the quarter. The company’s net sales and operating profit have shown positive trends, but there are some concerns regarding its increasing interest cost and decreasing PBT. Investors are advised to closely monitor the company’s financials and performance in the upcoming quarters.