Zydus Wellness Reports Flat Q2 Performance, Strong Operating Cash Flow

Nov 13 2024 09:41 AM IST
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Zydus Wellness, a midcap FMCG company, has reported flat financial performance for Q2 FY24-25 with a score of -4. However, the company has shown strong operating cash flow and generated higher cash revenues. On the other hand, net sales, PBT, and PAT have all declined, indicating a negative trend. Investors are advised to hold their positions in the stock.

Zydus Wellness, a midcap FMCG company, recently declared its financial results for the quarter ending September 2024. According to MarketsMOJO, a leading financial analysis platform, the stock call for Zydus Wellness is 'Hold'.

The company's financial performance for Q2 FY24-25 has remained flat, with a score of -4 compared to 12 in the previous 3 months. However, there are some positive aspects to the company's financials based on the September 2024 results.

Zydus Wellness has shown a strong operating cash flow, with the highest annual amount of Rs 246.40 crore in the last three years. This indicates that the company has generated higher cash revenues from its business operations.

On the other hand, there are some areas of concern for Zydus Wellness based on the September 2024 financials. The net sales for the quarter have fallen by -20.1% to Rs 492.90 crore, compared to the average net sales of the previous four quarters at Rs 616.68 crore. This indicates a negative trend in near-term sales.

Similarly, the profit before tax less other income (PBT) for the quarter has fallen by -81.7% to Rs 13.80 crore, compared to the average PBT of the previous four quarters at Rs 75.45 crore. The profit after tax (PAT) for the quarter has also fallen by -79.4% to Rs 15.70 crore, compared to the average PAT of the previous four quarters at Rs 76.05 crore. This shows a negative trend in near-term PBT and PAT.

Moreover, the company's cash and cash equivalents for the half-yearly period ending September 2024 are at the lowest level of Rs 21.40 crore in the last six half-yearly periods. This indicates a deteriorating short-term liquidity for the company.

Overall, Zydus Wellness has shown a mixed financial performance for the quarter ending September 2024. Investors are advised to hold their positions in the stock, as recommended by MarketsMOJO.
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