Westlife Foodworld's Q2 2024 Financial Results Show Mixed Performance

Westlife Foodworld, a midcap company in the finance/NBFC industry, recently declared its financial results for the quarter ending June 2024. According to the data released on July 25, 2024, the company has seen a negative financial performance with a score of -15, which has improved from -20 in the last three months.

Despite the overall negative performance, there are some positive aspects to note from the financials. The net sales for the quarter were the highest in the last five quarters at Rs 616.33 crore, indicating a positive trend in sales in the near term.

However, there are also some concerning factors in the financials. The Profit Before Tax (PBT) less Other Income has fallen by 103.0% compared to the average PBT of the previous four quarters. The same trend is seen in the Profit After Tax (PAT), which has fallen by 81.2% compared to the average PAT of the previous four quarters. This indicates a very negative trend in the near term for both PBT and PAT.

Another concerning factor is the company's high non-operating income, which is 113.05% of the PBT. This means that the company's income from non-business activities is high, which may not be a sustainable business model.

In terms of liquidity, the company's cash and cash equivalents are at the lowest in the last six half-yearly periods at Rs 14.12 crore. Additionally, the debt-equity ratio is at its highest in the last five half-yearly periods at 2.32 times. This suggests that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Overall, the financial results for the quarter ending June 2024 for Westlife Foodworld show a mix of positive and negative aspects. Investors should carefully consider these factors before making any investment decisions.