GTL Infrastructure's Q1 financial report shows concerning trends, potential cash flow issue.

This may indicate a potential cash flow issue.
GTL Infrastructure, a smallcap company in the telecom equipment industry, recently announced its financial results for the quarter ending June 2024. The company's stock has been given a "Strong Sell" rating by MarketsMOJO.

According to the financial report, GTL Infra. has seen a negative performance in the quarter, with a score of -13 compared to -11 in the previous quarter. This decline can be attributed to several factors.

One of the major concerns is the company's Profit After Tax (PAT), which has fallen by 21.4% to Rs -202.06 crore compared to the average PAT of the previous four quarters at Rs -166.48 crore. This trend is expected to continue in the near term.

Similarly, the Profit Before Tax less Other Income (PBT) has also seen a significant decline, reaching its lowest at Rs -206.98 crore in the last five quarters. This is a worrying trend as the company's PBT has fallen each quarter in the last five quarters. The average PBT of the previous four quarters was Rs -179.29 crore, showing a decline of 15.4%.

Another concerning factor is the company's Debt-Equity Ratio, which has reached its highest at -0.77 times and has grown in the last five half-yearly periods. This indicates that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

Furthermore, the Debtors Turnover Ratio, which measures the pace of settling debtors, has also seen a decline. It is currently at its lowest at 4.34 times and has fallen in the last five half-yearly periods. This could be a potential red flag for the company's cash flow.

In conclusion, GTL Infrastructure's financial performance for the quarter ending June 2024 has been negative, with several concerning factors. Investors should carefully consider these factors before making any investment decisions.