Zydus Wellness Reports Strong Growth in Q1 FY25 Financial Results

Aug 02 2024 02:33 PM IST
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Zydus Wellness, a midcap FMCG company, has reported a positive financial performance for the quarter ended June 2024. The company has shown significant growth in Profit Before Tax and Profit After Tax, as well as Net Sales. However, there are areas that need improvement, such as the Debtors Turnover Ratio and Non Operating Income. MarketsMojo has given a 'Hold' call for the company's stock based on these results.

Zydus Wellness, a midcap FMCG company, has recently declared its financial results for the quarter ended June 2024. The company has shown a positive performance with a score of 12, which is an improvement from the previous score of 8 in the last 3 months.

One of the key highlights of the financial results is the significant growth in Profit Before Tax (PBT) and Profit After Tax (PAT) for the quarter. PBT has grown by 125.2% to Rs 146.60 crore, while PAT has grown by 110.2% to Rs 147.70 crore, compared to the average PBT and PAT of the previous four quarters. This shows a very positive trend in the near term for the company.


Another positive aspect of the financial results is the growth in Net Sales, which has increased by 44.5% to Rs 841.00 crore compared to the average Net Sales of the previous four quarters. This indicates a strong sales trend in the near term for Zydus Wellness.


The company has also generated a high Operating Cash Flow of Rs 246.40 crore in the last three years, which is the highest in the last five quarters. This shows that the company has been able to generate higher cash revenues from its business operations.


However, there are some areas that need improvement for Zydus Wellness. The Debtors Turnover Ratio for the company has been the lowest at 8.17 times in the last five half yearly periods. This indicates that the company’s pace of settling its debtors has slowed down.


Additionally, the company’s Non Operating Income for the quarter has been the highest at Rs 5.00 crore in the last five quarters. While this may seem like a positive aspect, it is important to note that this income is from non-business activities and may not be sustainable in the long run.


Overall, Zydus Wellness has shown a positive financial performance in the quarter ended June 2024. However, there are some areas that need improvement for the company to maintain its growth in the long term. Based on these financial results, MarketsMOJO has given a ‘Hold’ call for Zydus Wellness stock.


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