3i Infotech's Financial Results Show Negative Trend in Q1 FY25

3i Infotech, a microcap IT software company, recently declared its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Strong Sell’ call by MarketsMOJO.

According to the financial report, 3i Infotech has seen a negative performance in the quarter, with a score of -15 compared to -6 in the previous quarter. This indicates a decline in the company’s financial health.

The company’s Profit Before Tax (PBT) less Other Income has fallen to Rs -47.05 crore, a decrease of 559.2% from the average PBT of the previous four quarters. This shows a very negative trend in the near term for PBT.

Similarly, the Profit After Tax (PAT) has also fallen to Rs -47.24 crore, a decrease of 403.9% from the average PAT of the previous four quarters. The company’s ability to manage interest payments has also deteriorated, with the Operating Profit to Interest ratio being the lowest in the last five quarters.

The Operating Profit (PBDIT) has also seen a decline, with the lowest value of Rs -37.02 crore in the last five quarters. The company’s efficiency has also deteriorated, with the Operating Profit Margin being the lowest in the last five quarters.

In terms of liquidity, the company’s Cash and Cash Equivalents have also decreased to Rs 54.51 crore in the last six half-yearly periods. The Debt-Equity Ratio has also increased to 0.29 times, indicating that the company is borrowing more to fund its operations.

Moreover, the company’s pace of settling its Debtors has slowed, with the Debtors Turnover Ratio being the lowest in the last five half-yearly periods.

Overall, the financial results for the quarter ending June 2024 show a negative trend for 3i Infotech. Investors are advised to exercise caution and consider the company’s financial performance before making any investment decisions.