Intl. Travel Hse Reports Positive Q3 Results, But Operating Profit Margin Decreases

Operating Profit Margin (OPM) - Quarterly: At 6.74% is lower than 10.00% in the last 3 quarters. Company's profitability has decreased in the short term.

International Travel House, a microcap company in the travel services industry, has recently announced its financial results for the quarter ending December 2023. According to the latest report, the company has shown positive performance in terms of net sales and profit after tax (PAT).

In the last three months, the company's score has improved from 13 to 6, indicating a positive trend in its financials. The net sales for the quarter were recorded at Rs 53.70 crore, the highest in the last five quarters, and have been growing consistently. This shows a strong and positive sales trend in the near term.

The PAT for the nine-month period was Rs 16.38 crore, with a year-on-year growth of 28.27%. This indicates a positive trend in the company's profitability in the near term. Additionally, the debtors turnover ratio for the half-yearly period was the highest at 2.72 times, showing that the company has been able to settle its debtors faster.

However, there are some areas that need improvement for Intl. Travel Hse based on its Dec 2023 financials. The company's cash and cash equivalents for the half-yearly period were the lowest at Rs 9.43 crore in the last six half-yearly periods, indicating a deteriorating short-term liquidity. Moreover, the operating profit margin for the quarter was 6.74%, lower than the previous three quarters, indicating a decrease in profitability in the short term.

Overall, Intl. Travel Hse has shown positive financial performance in the quarter ending December 2023, with strong net sales and PAT growth. However, the company needs to focus on improving its cash and cash equivalents and operating profit margin to maintain its positive trend in the long term. Based on these financials, MarketsMOJO has given a 'Hold' call for the company's stock.