Lyka Labs Reports Strong Financial Performance in Q3 2024, Focus on Improving Cash Flow and Liquidity

Lyka Labs, a microcap pharmaceutical company, has recently announced its financial results for the quarter ending September 2024. The company has shown a very positive performance, with its score improving from 15 to 23 in the last three months.

According to the financials, Lyka Labs has seen a significant growth in its Profit Before Tax (PBT) by 689.58% year on year, reaching Rs 2.83 crore. The company's net sales have also increased by 47.05% year on year, reaching Rs 41.16 crore. This shows a very positive trend in the near term for both PBT and sales.

Moreover, Lyka Labs has also shown a strong ability to manage its interest payments, with its Operating Profit to Interest ratio being the highest in the last five quarters at 9.17 times. The company's net sales have also been consistently increasing in the last five quarters, reaching its highest at Rs 41.16 crore. This indicates a positive trend in the near term for sales.

In terms of profitability, Lyka Labs has shown a positive trend in its PBT, reaching its highest at Rs 2.83 crore in the last five quarters. The company's Profit After Tax (PAT) has also been consistently increasing, reaching its highest at Rs 2.10 crore. This has resulted in a higher earnings per share (EPS) of Rs 0.59, indicating an increase in profitability and creating higher earnings for shareholders.

However, there are some areas that need improvement for Lyka Labs. The company's Operating Cash Flow has been falling each year in the last three years, reaching its lowest at Rs 3.09 crore. Additionally, the company's short-term liquidity has deteriorated, with its Cash and Cash Equivalents reaching its lowest at Rs 1.11 crore in the last six half yearly periods.

Overall, Lyka Labs has shown a very positive financial performance in the quarter ending September 2024. However, the company needs to focus on improving its cash flow and short-term liquidity in order to sustain its growth in the future. Based on these financials, MarketsMOJO has given a 'Hold' call for Lyka Labs' stock.