Tasty Bite Eatables' Q1 FY25 Financial Results Show Significant Decrease, Concerning Factors for Investors

Tasty Bite Eatables, a smallcap FMCG company, recently declared its financial results for the quarter ending June 2024. According to MarketsMOJO, the stock has been given a ‘Strong Sell’ call. The company’s financial performance for the quarter has been very negative, with a score of -28, a significant decrease from -18 in the previous quarter.

However, there are some positive aspects to Tasty Bite Eatables’ financials. The company has shown a strong operating cash flow of Rs 66.78 crore annually in the last three years, indicating higher cash revenues from business operations. Additionally, the dividend per share (DPS) has been consistently high at Rs 2.00 in the last five years, showing that the company is distributing higher dividends from its profits.

On the other hand, there are several areas where Tasty Bite Eatables’ financials have not been performing well. The net sales for the quarter have fallen by -36.9% to Rs 85.29 crore, compared to the average net sales of the previous four quarters at Rs 135.09 crore. This indicates a very negative sales trend in the near term. The profit before tax less other income (PBT) has also seen a significant decrease of -176.3% to Rs -7.18 crore, compared to the average PBT of the previous four quarters at Rs 9.42 crore. Similarly, the profit after tax (PAT) has fallen by -135.5% to Rs -3.69 crore, compared to the average PAT of the previous four quarters at Rs 10.38 crore.

Other concerning factors include a declining operating profit margin, deteriorating ability to manage interest payments, and a negative trend in operating profit. The company’s earnings per share (EPS) have also decreased to Rs -14.36 in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Additionally, the dividend payout ratio (DPR) has been consistently low at 1.24% in the last five years, showing that the company is distributing a lower proportion of its profits as dividends.

Overall, Tasty Bite Eatables’ financial performance for the quarter ending June 2024 has been very negative, with several concerning factors. Investors should carefully consider these financials before making any investment decisions.