FDC's Q3 financial report shows mixed results, with concerns over PBT and PAT.
FDC, a midcap pharmaceutical company, reported flat financial results for the quarter ending September 2024. The company's operating cash flow has been strong in the last three years, but its Profit Before Tax and Profit After Tax have decreased. Non Operating Income accounts for a significant portion of the company's PBT, and its Dividend Payout Ratio is at its lowest in five years. Investors are advised to hold their stock and monitor future financial reports closely.
FDC, a midcap pharmaceutical company, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.
According to the financial report, FDC's performance for the quarter was flat, with a score of -5 compared to 14 in the previous quarter. However, there are some positive aspects to the company's financials. FDC has shown a strong operating cash flow of Rs 220.77 crore annually in the last three years, indicating higher cash revenues from business operations.
On the other hand, there are some areas of concern for FDC. The company's Profit Before Tax (PBT) has fallen by 30.3% to Rs 55.30 crore in the quarter, compared to the average PBT of the previous four quarters at Rs 79.39 crore. Similarly, the Profit After Tax (PAT) has also decreased by 8.3% to Rs 72.04 crore in the quarter, compared to the average PAT of the previous four quarters at Rs 78.59 crore. This indicates a negative trend in the near term for both PBT and PAT.
Another issue highlighted in the financial report is the high Non Operating Income, which accounts for 38.56% of the PBT. This suggests that the company's income from non-business activities is significant, which may not be a sustainable business model in the long run.
Furthermore, FDC's Dividend Payout Ratio (DPR) is at its lowest in the last five years, at 0.00%. This means that the company is distributing a lower proportion of its profits as dividends to its shareholders.
In the last five quarters, FDC has also seen its Non Operating Income reach its highest at Rs 34.70 crore. While this may seem like a positive, it is important to note that increased income from non-business activities may not be sustainable for the company.
Overall, FDC's financial performance for the quarter has been mixed, with some positive and negative aspects. Investors are advised to hold their stock and keep a close eye on the company's future financial reports.
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