Sanofi India's Q1 2024 Financial Results Show Negative Performance, Concerns for Investors

Sanofi India, a midcap pharmaceutical company, recently declared its financial results for the quarter ended March 2024. The company's stock call has been given a 'Hold' rating by MarketsMOJO.

According to the financial report, Sanofi India has seen a negative performance in the quarter, with a score of -7 compared to 0 in the previous quarter. This decline can be attributed to various factors.

One of the major concerns for the company is its operating cash flow, which has been consistently falling over the last three years. In the last financial year, the company's operating cash flow was at its lowest at Rs 230.80 crore. This indicates that the company's cash revenues from business operations are declining.

Another area of concern is the company's short-term liquidity, as reflected by its cash and cash equivalents. In the last six half-yearly periods, the company's cash and cash equivalents have been at their lowest at Rs 404.90 crore. This suggests that the company's short-term liquidity is deteriorating.

Moreover, Sanofi India has also been distributing lower dividends to its shareholders compared to previous years. In the last five years, the company's dividend per share (DPS) has been at its lowest at Rs 167.00. This could be a cause of concern for investors who rely on dividends for income.

Furthermore, the company's dividend payout ratio (DPR) has also been at its lowest at 63.68% in the last five years. This indicates that the company is distributing a lower proportion of its profits as dividends.

Overall, the financial results for the quarter ended March 2024 show a negative performance for Sanofi India. Investors may want to closely monitor the company's financials and future developments before making any investment decisions.