ABM Knowledgeware's Q3 Financial Results Show Significant Decline, Investors Advised to Hold Stock

ABM Knowledgeware, a microcap IT software company, has recently announced its financial results for the quarter ended December 2023. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, ABM Knowledgeware has seen a negative performance in the quarter, with a score of -12 compared to 1 in the previous quarter. This is a significant decline in just three months.

The company's Profit Before Tax (PBT) has also fallen by 52.3% to Rs 1.44 crore, compared to the average PBT of the previous four quarters which was Rs 3.02 crore. The trend for near term PBT is also negative.

Similarly, the Profit After Tax (PAT) for the half-yearly period has shown a decline of 21.20% year on year. The company's operating profit (PBDIT) for the quarter is at its lowest in the last five quarters, and the operating profit margin has also decreased to 11.21%. This indicates a deterioration in the company's efficiency.

Moreover, the company's non-operating income is 49.30% of its PBT, which suggests that a significant portion of its income is coming from non-business activities. This is not a sustainable business model.

The earnings per share (EPS) for the quarter is also at its lowest in the last five quarters, at Rs 1.27. This shows a decline in profitability and lower earnings for shareholders.

Additionally, the debtors turnover ratio for the half-yearly period is at its lowest in the last five periods, indicating a slowdown in the company's pace of settling its debtors.

Overall, the financial results for the quarter ended December 2023 have not been favorable for ABM Knowledgeware. Investors are advised to hold their stock and closely monitor the company's performance in the near future.