Radico Khaitan's Q4 financials show mixed results, with positive sales trend but concerning factors

Radico Khaitan, one of the leading breweries in India, has recently declared its financial results for the quarter ending March 2024. The company has seen a flat performance in this quarter, with a score of -2 compared to -1 in the previous three months.

Despite this, there are some positive aspects to the financials. The net sales for the half-yearly period have shown a growth of 37.91% year on year, indicating a positive sales trend in the near term. However, there are also some concerning factors that need to be addressed.

The operating profit to interest ratio for the quarter is at its lowest in the last five quarters, indicating a deteriorating ability to manage interest payments. The profit after tax for the quarter has also fallen by 14.1% compared to the average of the previous four quarters. This negative trend in PAT is a cause for concern.

Furthermore, the interest cost for the half-yearly period has increased by 39.09%, which could signify increased borrowings by the company. The profit before tax less other income for the quarter has also fallen by 9.4% compared to the average of the previous four quarters.

In conclusion, while Radico Khaitan's financial performance for the quarter ending March 2024 may not be as strong as expected, there are still some positive aspects to consider. Investors are advised to hold their stocks for now, as recommended by MarketsMOJO. However, the company needs to address the concerning factors and work towards improving its financials in the near future.