Venky's (India) Reports Mixed Q2 Financials, Dividend Payout Ratio at Record High

Venky's (India), a smallcap FMCG company, has recently declared its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financials, Venky's (India) has seen a flat performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 15 to 0 in the last three months. However, there are some positive aspects in the financials that are working in favor of the company.

One such aspect is the Dividend Payout Ratio (DPR) which is at its highest at 12.47% annually. This indicates that the company is distributing a higher proportion of its profits as dividends to its shareholders. Moreover, the DPR has been growing each year in the last five years, which is a positive sign for investors.

On the other hand, there are some areas where Venky's (India) needs to improve based on its September 2024 financials. The Profit Before Tax (PBT) has fallen by -97.3% over the average PBT of the previous four quarters. This is a significant decline and the near-term trend for PBT is negative. Similarly, the Profit After Tax (PAT) has also fallen by -77.0% over the average PAT of the previous four quarters. The company's net sales have also seen a decline of -13.2% over the average net sales of the previous four quarters. This is a concerning trend for investors.

In addition, the company's non-operating income is 91.18% of its PBT, which indicates that a significant portion of its income is coming from non-business activities. This is not a sustainable business model and the company needs to focus on improving its core operations.

Overall, Venky's (India) has reported a mixed financial performance for the quarter ending September 2024. While there are some positive aspects, there are also areas that need improvement. Investors should carefully analyze the company's financials before making any investment decisions.