Route Mobile's Q2 FY25 financial results show mixed performance, with positive sales and profits but areas for improvement

Route Mobile, a midcap IT software company, has recently declared its financial results for the quarter ended September 2024. The company has seen a flat performance in this quarter, with a slight improvement in its overall score from -8 to -2 in the last three months.

One of the key highlights of the financial results is the increase in net sales, which have reached a five-quarter high of Rs 1,113.41 crore. This indicates a positive trend in the company’s near-term sales performance. Similarly, the operating profit (PBDIT) has also reached a five-quarter high of Rs 135.23 crore, showing a positive trend in the near term.

The profit after tax (PAT) has also seen a significant increase, reaching a five-quarter high of Rs 96.38 crore. This is a positive sign for the company’s financial performance in the near future.

However, there are some areas that need improvement for Route Mobile. The operating cash flow has been consistently falling in the last three years, with the lowest being Rs -97.59 crore in the last year. This indicates a decline in the company’s cash revenues from business operations.

Additionally, the non-operating income has reached a five-quarter high of Rs 32.55 crore. While this may seem like a positive development, it is important to note that this income is from non-business activities and may not be sustainable in the long run.

Overall, the financial results for the quarter ended September 2024 show a mixed performance for Route Mobile. While there are some positive trends in terms of sales and profits, there are also areas that need improvement. MarketsMOJO has given a ‘Hold’ call for the company’s stock, indicating a neutral stance for investors.