Globus Spirits' Q3 Financial Results Show Negative Trend, Investors Advised to Monitor Closely

Globus Spirits, a smallcap company in the breweries and distilleries industry, recently declared its financial results for the quarter ending September 2024. According to the report, the company's financial performance has been negative, with a score of -19 compared to -11 in the previous quarter.

The Profit Before Tax (PBT) for the quarter was at Rs 0.07 crore, which is a significant decrease of 99.4% from the average PBT of the previous four quarters, which was Rs 11.68 crore. This indicates a very negative trend in the near term for the company's PBT. Similarly, the Profit After Tax (PAT) for the quarter was at Rs 1.41 crore, a decrease of 92.3% from the average PAT of the previous four quarters, which was Rs 18.38 crore. This also shows a very negative trend in the near term for the company's PAT.

The company's ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters. Additionally, the interest cost has increased by 10.42% (QoQ), indicating increased borrowings by the company.

Furthermore, the Non Operating Income for the quarter was 96.65% of the PBT, which suggests that the company's income from non-business activities is high. This is not a sustainable business model for the company.

MarketsMOJO has given a 'Hold' call for Globus Spirits' stock, based on its negative financial performance in the quarter. Investors are advised to closely monitor the company's financials and performance in the upcoming quarters before making any investment decisions.