Alldigi Tech's Q2 FY25 financials show mixed results, with strong cash flow and sales but declining profits

Alldigi Tech, a smallcap BPO/ITeS company, has recently declared its financial results for the quarter ending September 2024. The company’s stock call has been given a ‘Hold’ rating by MarketsMOJO.

According to the financial report, Alldigi Tech has seen a flat performance in the quarter, with a score of 1 compared to 17 in the previous quarter. However, there are some positive aspects to the company’s financials.

One of the key highlights is the company’s strong operating cash flow, which has been consistently growing over the past three years. In the last fiscal year, Alldigi Tech generated a cash flow of Rs 90.83 crore, which is the highest among its peers in the industry. This indicates that the company has been able to generate higher revenues from its business operations.

Another positive aspect is the company’s net sales, which have been consistently increasing in the last five quarters. In the quarter ending September 2024, Alldigi Tech recorded a net sales of Rs 131.43 crore, which is the highest in the last five quarters. This shows a positive trend in the company’s sales performance in the near term.

However, there are also some areas of concern in Alldigi Tech’s financials. The company’s profit after tax (PAT) for the quarter has fallen by 29.3% compared to the average PAT of the previous four quarters. This is a significant decline and indicates a negative trend in the company’s near term PAT.

Overall, Alldigi Tech’s financial performance for the quarter ending September 2024 has been mixed. While there are some positive aspects, there are also some areas of concern. Investors are advised to hold their positions in the company’s stock and monitor its performance closely in the coming quarters.