Nettlinx's Financial Report Shows Concerning Trends for Quarter Ending June 2024

Nettlinx, a microcap IT software company, has recently announced its financial results for the quarter ending June 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Nettlinx has shown positive performance in the quarter, with a score of 8 compared to 33 in the previous three months. However, there are some concerning factors that have affected the company's overall performance.

One of the major concerns is the decline in Profit After Tax (PAT) by 45.1% compared to the average of the previous four quarters. This trend is expected to continue in the near term. Similarly, the Net Sales have also fallen by 11.9% compared to the average of the previous four quarters, indicating a negative sales trend.

The company's Operating Profit (PBDIT) has also hit a low of Rs 2.16 crore in the last five quarters, with a negative trend in the near term. The Operating Profit Margin has also decreased to 29.96%, indicating a decline in efficiency.

Moreover, the Profit Before Tax less Other Income (PBT) has hit a low of Rs 1.63 crore in the last five quarters, with a negative trend in the near term. This has also resulted in a decline in the company's Earnings per Share (EPS) to Rs 0.46, creating lower earnings for shareholders.

Additionally, Nettlinx's Debtors Turnover Ratio has slowed down to 1.93 times in the last five half-yearly periods, indicating a slower pace in settling its debtors.

Overall, Nettlinx's financial performance for the quarter ending June 2024 has been concerning, with a negative trend in various key areas. Investors are advised to carefully consider these factors before making any investment decisions.