Are AGS Transact latest results good or bad?

AGS Transact Technologies has recently reported its financial results for the quarter ending September 2024, reflecting a notable performance with significant growth in Profit Before Tax (PBT) and Profit After Tax (PAT) compared to the average of the previous four quarters. Specifically, PBT grew by 111.6% and PAT by 190.7%, with the highest PAT recorded at Rs 15.17 crore in the last five quarters. Additionally, the company has demonstrated strong operating cash flow of Rs 302.52 crore over the past three years, indicating robust cash revenues from its operations. The Earnings per Share (EPS) also reached its highest level in five quarters at Rs 1.25, suggesting an ability to generate higher earnings for shareholders.
However, there are areas of concern. The company's non-operating income constitutes 79.30% of its PBT, which raises questions about the sustainability of its business model. Furthermore, the debtors turnover ratio has shown a slowdown over the last five half-yearly periods, and the distribution of dividends and profits to shareholders has been lower in the past five years.

In the subsequent quarter ending December 2024, AGS Transact experienced a decline in net sales, with a reported decrease of 40.40% compared to the previous quarter. The consolidated net profit also showed a significant decline, with a change of -1,380.55%. Operating profit, excluding other income, turned negative, indicating challenges in maintaining operational profitability. The operating profit margin, excluding other income, was reported at -83.06%, reflecting further difficulties in managing costs relative to sales.

Overall, while AGS Transact Technologies has shown a positive financial performance in the September 2024 quarter, the results for December 2024 indicate significant challenges that the company will need to address moving forward. Additionally, the company saw an adjustment in its evaluation during this period.