Westlife Foodworld's Q2 FY25 Financial Results Show Mixed Performance

Westlife Foodworld, a midcap finance company, recently announced its financial results for the quarter ending September 2024. According to the data released on October 24, 2024, the company has seen a negative performance in this quarter. This has led to a stock call of ‘Sell’ by MarketsMOJO.

Despite the negative performance, there are some positive aspects to note from the financials. The company’s net sales for the quarter were the highest in the last five quarters at Rs 618.01 crore, indicating a positive trend in sales. Additionally, the dividend payout ratio (DPR) for the year was the highest in the last five years at 77.73%, showing that the company is distributing a higher proportion of its profits as dividends.

However, there are also some concerning factors in the financials. The profit before tax less other income (PBT) for the quarter was at Rs -5.77 crore, which is a significant decrease of -155.6% compared to the average PBT of the previous four quarters. The same trend can be seen in the profit after tax (PAT) for the quarter, which has fallen by -96.7% compared to the average PAT of the previous four quarters. The operating profit margin for the quarter was also at its lowest in the last five quarters, indicating a decline in the company’s efficiency.

Furthermore, the non-operating income for the quarter was at a high of 924.29% of the PBT. This suggests that the company’s income from non-business activities is not a sustainable business model. The earnings per share (EPS) for the quarter were also at its lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders.

It is worth noting that the non-operating income for the quarter was also at its highest in the last five quarters. While this may seem positive, it is important to consider if this increase in income from non-business activities is sustainable in the long run.

Overall, the financial results for the quarter ending September 2024 for Westlife Foodworld show a mix of positive and negative aspects. Investors should carefully analyze the data and make informed decisions based on their own research and risk appetite.