Latent View Analytics Reports Positive Q2 Results, Strong Operating Cash Flow

Latent View Analytics, a midcap IT software company, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in the second quarter of the fiscal year 2024-2025, with a score of 13, which is an improvement from the previous score of 6 in the last three months.

One of the key factors contributing to this positive performance is the company's strong operating cash flow, which has been consistently growing over the past three years. In the last fiscal year, Latent View generated the highest annual operating cash flow of Rs 115.37 crore. Additionally, the company's net sales have also been on an upward trend, with the highest quarterly net sales of Rs 208.95 crore in the last five quarters. This indicates a positive sales trend in the near term.

Moreover, Latent View's profit after tax (PAT) for the first nine months of the fiscal year has shown a growth of 22.71% year on year, reaching Rs 124.06 crore. The company's quarterly net sales have also seen a growth of 24.4% over the average net sales of the previous four quarters, which is a positive sign for the company's financial performance in the near term.

However, one area of concern for Latent View is its non-operating income, which accounts for 38.77% of its profit before tax (PBT). This indicates that the company's income from non-business activities is high, which may not be a sustainable business model in the long run.

In conclusion, Latent View Analytics has shown a positive financial performance in the second quarter of the fiscal year 2024-2025, with strong operating cash flow and growing net sales. However, the company needs to address its high non-operating income to ensure a sustainable business model in the long term. Based on these financial results, MarketsMOJO has given a 'Sell' call for Latent View's stock.