Artefact Project Reports Flat Performance in Q3, Non-Operating Income a Concern

Artefact Project, a microcap engineering company, has recently announced its financial results for the quarter ending September 2024. The company has reported a flat performance for the quarter, with no significant changes in its score over the last three months.

According to the financials, Artefact Project's operating profit (PBDIT) for the quarter was the highest in the last five quarters, at Rs 1.47 crore. The near-term trend for operating profit is positive. Similarly, the profit before tax (PBT) less other income for the quarter was also the highest in the last five quarters, at Rs 0.95 crore. The near-term trend for PBT is also positive.

However, the company's non-operating income for the quarter was 56.82% of the PBT. This indicates that a significant portion of the company's income is coming from non-business activities, which may not be a sustainable business model. The non-operating income for the quarter was also the highest in the last five quarters, at Rs 1.25 crore. This increase in income from non-business activities may not be sustainable in the long run.

MarketsMOJO has given a 'Sell' call for Artefact Project's stock based on these financial results. Investors should carefully consider these factors before making any investment decisions.