Onelife Capital's Q4 financials show positive growth, but concerns remain over non-business income and debt

Onelife Capital Advisors, a microcap finance company, has recently declared its financial results for the quarter ending March 2024. The company has received a 'Sell' call from MarketsMOJO, a leading financial analysis platform.

According to the financials, Onelife Capital has shown a very positive performance in the quarter, with a score of 28 compared to -1 in the previous quarter. The company's profit before tax (PBT) has seen a significant growth of 703.3% at Rs 4.51 crore, compared to the average PBT of the previous four quarters at Rs -0.75 crore. The profit after tax (PAT) has also shown a growth of 361.6% at Rs 1.55 crore, compared to the average PAT of the previous four quarters at Rs -0.59 crore.

The net sales for the quarter have been the highest in the last five quarters at Rs 32.41 crore, indicating a positive trend in the company's sales. The operating profit (PBDIT) has also been the highest in the last five quarters at Rs 6.18 crore, showing a positive trend in the company's operations. The operating profit margin has also improved to 19.07%, indicating an increase in the company's efficiency.

On the other hand, the non-operating income for the quarter is 38.39% of the PBT, which is a cause for concern as it shows a high reliance on non-business activities. The debt-equity ratio has also been the highest in the last five half-yearly periods at 0.52 times, indicating that the company is borrowing more to fund its operations.

Despite these concerns, Onelife Capital has shown a positive trend in its financials, with the highest earnings per share (EPS) in the last five quarters at Rs 1.16. The company's cash and cash equivalents have also been the highest in the last six half-yearly periods at Rs 5.66 crore, indicating an improvement in its short-term liquidity.

Overall, Onelife Capital's financial performance for the quarter ending March 2024 has been positive, with improvements in key areas such as PBT, PAT, net sales, and operating profit. However, investors should keep an eye on the company's reliance on non-business income and its debt-equity ratio.