Venky's (India) Reports Strong Financial Performance in Q1 FY25, But Some Areas Need Improvement

Venky’s (India), a smallcap FMCG company, has recently declared its financial results for the quarter ending June 2024. The company has shown positive performance in this quarter, with a score of 15 compared to 7 in the previous quarter.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax less Other Income (PBT) which has increased by 415.2% to Rs 90.39 crore. This is a significant improvement compared to the average PBT of the previous four quarters which was Rs 17.55 crore. The trend for PBT in the near term is also very positive.

Similarly, the Profit After Tax (PAT) has also shown a growth of 280.3% to Rs 75.18 crore, compared to the average PAT of the previous four quarters which was Rs 19.77 crore. The company’s Operating Profit (PBDIT) has also seen a significant increase, reaching its highest at Rs 103.26 crore in the last five quarters. The Operating Profit Margin has also improved, reaching its highest at 12.78%.

However, there are some areas where Venky’s (India) needs to focus on. The Net Sales for this quarter have fallen by -13.5% to Rs 808.02 crore, compared to the average Net Sales of the previous four quarters which was Rs 934.54 crore. The company’s pace of settling its Debtors has also slowed, with the Debtors Turnover Ratio being the lowest at 5.23 times in the last five half yearly periods.

In conclusion, Venky’s (India) has shown positive financial performance in the quarter ending June 2024, with significant improvements in key areas such as PBT, PAT, and Operating Profit. However, the company needs to address the decline in Net Sales and the slowdown in settling its Debtors in order to maintain its positive momentum. Based on these financials, MarketsMOJO has given a ‘Hold’ call for Venky’s (India) stock.