Westlife Foodworld Reports Strong Q4 Growth Amid Rising Debt Concerns

Westlife Foodworld has recently reported its financial results for the quarter ending December 2024, revealing a complex picture of its performance. The company has experienced a notable adjustment in its evaluation, with its score shifting to -6 from -19 over the past three months.
On a positive note, the Profit Before Tax (PBT) for the quarter stands at Rs 3.55 crore, reflecting a growth of 61.2% compared to the average PBT of the previous four quarters, which was Rs 2.20 crore. Additionally, net sales reached Rs 653.72 crore, marking the highest figure in the last five quarters, indicating a favorable near-term sales trend. The Profit After Tax (PAT) also showed positive movement, recorded at Rs 7.01 crore, which is a 29.8% increase over the average PAT of Rs 5.40 crore from the previous four quarters.

Conversely, the company faces challenges, particularly with its debt-equity ratio, which has risen to 2.48 times, the highest in the last five half-yearly periods. This suggests an increasing reliance on borrowing to fund operations, potentially straining liquidity. Furthermore, non-operating income constitutes 45.30% of PBT, raising concerns about the sustainability of its business model.

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