Umang Dairies Reports Negative Financial Performance

Umang Dairies, a microcap FMCG company, has recently declared its financial results for the quarter ended September 2023. The company's net sales for the quarter have seen a decline of 25.11% compared to the previous quarter, while the standalone net profit has also decreased by 30.77%. This has resulted in a negative financial performance for the quarter, with a score of -10, as compared to -7 in the last three months.

One of the major factors contributing to this decline is the decrease in net sales, which has fallen to Rs 59.93 crore from an average of Rs 79.28 crore in the previous four quarters. This indicates a negative trend in the company's sales in the near term. Additionally, the company's operating profit to interest ratio has also decreased, indicating a deteriorating ability to manage interest payments.

The company's interest cost has also increased by 20.66% in the last half-yearly period, which could be a result of increased borrowings. This has further impacted the company's financial performance.

In terms of profitability, Umang Dairies has seen a decline in its operating profit margin, which has fallen to -3.40% in the last five quarters. The company's earnings per share have also decreased to Rs -1.47, indicating a decline in profitability and lower earnings for shareholders.

Overall, Umang Dairies has seen a negative financial performance in the quarter ended September 2023. The company's sales, profitability, and ability to manage interest payments have all been impacted, resulting in a negative score and a "Sell" call by MarketsMOJO. Investors should carefully consider these factors before making any investment decisions related to Umang Dairies.