DC Infotech & Communication shows positive growth in financial performance, receives 'Hold' call from MarketsMOJO

DC Infotech & Communication, a microcap IT hardware company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive growth in its financial performance, with a score of 11 out of 15, compared to 7 in the previous quarter.

According to the financial report, DC Infotech's net sales for the first half of the year were Rs 248.83 crore, showing a growth of 22.51% year on year. The company's profit after tax (PAT) for the same period was Rs 6.75 crore, with a growth of 28.82% year on year. This indicates a positive trend in the company's sales and profitability.

The operating profit margin for the quarter was the highest in the last five quarters, at 4.91%. This shows an improvement in the company's efficiency. The profit before tax (PBT) for the quarter was Rs 4.79 crore, with a growth of 24.6% over the average PBT of the previous four quarters. This also indicates a positive trend in the company's PBT.

However, the company's interest cost for the nine-month period has increased by 38.86% compared to the previous year. This could be a cause for concern as it signifies increased borrowings.

MarketsMOJO has given a 'Hold' call for DC Infotech's stock, based on its financial performance. With positive sales and profitability trends, the company seems to be on the right track. However, investors should keep an eye on the rising interest cost.