CG-VAK Software Reports Strong Profit Growth Amid Declining Liquidity Challenges in December 2024 Results
CG-VAK Software & Exports announced its financial results for the quarter ending December 2024, highlighting significant growth in operating profit and profit margins. While net sales and profit after tax also increased, the company reported a decline in cash reserves and a slower debtors turnover ratio, indicating liquidity challenges.
CG-VAK Software & Exports has recently reported its financial results for the quarter ending December 2024, with the announcement made on February 12, 2025. The company has experienced a notable adjustment in its evaluation, reflecting a shift in its score to 5 from -8 over the past three months.The financial data reveals several positive trends for CG-VAK Software. The operating profit reached its highest level at Rs 3.76 crore, marking consistent growth over the last five quarters. Additionally, the operating profit margin improved to 19.05%, indicating enhanced efficiency within the company. Profit before tax also saw a peak at Rs 3.24 crore, alongside net sales, which reached Rs 19.74 crore, both reflecting a favorable near-term trend. Furthermore, profit after tax hit Rs 2.68 crore, and earnings per share rose to Rs 5.31, showcasing increased profitability for shareholders.
Conversely, the company faces challenges, particularly in its cash and cash equivalents, which have fallen to Rs 8.90 crore, the lowest in the last six half-yearly periods, indicating a decline in short-term liquidity. Additionally, the debtors turnover ratio has decreased to 5.53 times, suggesting a slowdown in the pace of settling debts.
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