MANGALAM SEEDS' Q2 profits decline despite strong sales growth, raises concerns for investors.

Despite a positive growth in net sales, MANGALAM SEEDS has seen a decline in its profitability in the second quarter of the fiscal year 2024-2025. The company's financial performance has been deemed negative by MarketsMOJO, with a 'Sell' call for its stock.

According to the financial results declared on November 14, 2024, the company's net sales have grown by 41.52% year on year, indicating a strong sales trend in the near term. However, the profit before tax and after tax have both fallen by -46.86% and -43.8% respectively, compared to the same quarter last year. This negative trend in profitability is a cause for concern for investors.

One of the major factors contributing to this decline in profitability is the significant increase in interest cost, which has grown by 120,999,900.00% quarter on quarter. This signifies that the company has taken on more borrowings, which could potentially impact its financial stability.

Moreover, MANGALAM SEEDS' operating profit to interest ratio is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The company's operating profit and profit before tax have also hit their lowest in the last five quarters, further highlighting the negative trend in its financial performance.

In conclusion, while MANGALAM SEEDS has shown positive growth in net sales, its declining profitability and increasing interest cost raise concerns for investors. MarketsMOJO's 'Sell' call for the company's stock reflects the negative financial performance in the second quarter of the fiscal year 2024-2025.