Ekansh Concept reports strong Q2 results, but reliance on non-business income raises concerns

Ekansh Concept, a microcap IT software company, has recently announced its financial results for the quarter ending September 2024. The company's stock call has been marked as 'Sell' by MarketsMOJO.

According to the financial report, Ekansh Concept has shown a positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 3 to 17 in the last three months.

One of the key factors contributing to this positive performance is the significant growth in Profit After Tax (PAT). The company's PAT for the quarter was Rs 1.87 crore, which is a 339% increase from the average PAT of the previous four quarters. This trend is expected to continue in the near term.

Another positive aspect of Ekansh Concept's financials is the growth in Net Sales. The company's Net Sales for the quarter were Rs 17.87 crore, which is a 51.3% increase from the average Net Sales of the previous four quarters. This indicates a strong sales trend in the near term.

However, there are some areas that need improvement for Ekansh Concept. The company's Non Operating Income for the quarter was 243.22% of the Profit Before Tax (PBT). This suggests that the company's income from non-business activities is high, which may not be a sustainable business model.

Additionally, the Non Operating Income for the quarter was the highest in the last five quarters at Rs 4.84 crore. While this may seem like a positive, it could also indicate that the company is relying heavily on non-business activities for income, which may not be sustainable in the long run.

Overall, Ekansh Concept has shown a positive financial performance in the second quarter of FY24-25. However, investors should keep an eye on the company's reliance on non-business activities for income.