Ironwood Education reports positive financial results in Q2 FY24-25

Ironwood Education, a microcap educational institution, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in the second quarter of the fiscal year 2024-2025, with a significant improvement in its score from -3 to 8 in the last three months.

One of the key factors contributing to this positive performance is the company's operating cash flow, which has been consistently growing over the past three years and is currently at its highest at Rs -0.82 crore annually. This indicates that Ironwood Education has been able to generate higher cash revenues from its business operations.

In terms of profitability, the company has also shown promising results. Its Profit Before Tax (PBT) for the quarter is at its highest in the last five quarters at Rs -0.29 crore, with a positive trend in the near term. Similarly, the Profit After Tax (PAT) for the quarter is also at its highest in the last five quarters at Rs 0.96 crore, with a positive trend in the near term. This shows that Ironwood Education has been able to create higher earnings for its shareholders.

However, there are some areas that the company needs to work on. The Non Operating Income for the quarter is 130.21% of the PBT, indicating that the company's income from non-business activities is high. This may not be a sustainable business model in the long run. Additionally, the Non Operating Income for the quarter is at its highest in the last five quarters at Rs 1.25 crore, which may not be sustainable.

Overall, Ironwood Education has shown positive financial performance in the second quarter of FY24-25. However, investors should take note of the company's high non-business income and its sustainability in the long run. Based on these financial results, MarketsMOJO has given a 'Sell' call for Ironwood Education's stock.