Intrasoft Technologies' Financial Report Reveals Decline in Performance and Red Flags
Intrasoft Technologies, a microcap company in the BPO/ITeS industry, has reported a flat performance in the last quarter with a decline in overall financial health. Concerns include increasing interest cost and high non-operating income, indicating an unsustainable business model. EPS has also declined, while non-operating income has increased but may not be sustainable. Investors should carefully consider these factors before investing.
Intrasoft Technologies, a microcap company in the BPO/ITeS industry, recently announced its financial results for the quarter ending March 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.
According to the financial report, Intrasoft Tech. has experienced a flat performance in the last quarter, with a score of -3 compared to 5 in the previous three months. This indicates a decline in the company's overall financial health.
One of the major concerns highlighted in the report is the increasing interest cost, which has reached its highest in the last five quarters at Rs 3.16 crore. This is a 10.49% increase from the previous quarter, suggesting that the company has taken on more borrowings.
Another red flag is the high non-operating income, which accounts for 63.22% of the company's profit before tax. This means that a significant portion of the company's income is coming from non-business activities, which is not a sustainable business model.
The company's earnings per share (EPS) have also declined, reaching its lowest at Rs 1.45 in the last five quarters. This indicates a decrease in profitability and lower returns for shareholders.
On the positive side, the non-operating income has also increased, reaching its highest at Rs 2.51 crore in the last five quarters. However, this may not be sustainable in the long run.
Overall, the financial results for the quarter ending March 2024 show some concerning trends for Intrasoft Technologies. Investors are advised to carefully consider these factors before making any investment decisions.
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