Sigma Solve's Q1 FY25 Financial Results Show Mixed Performance, Investors Urged to Analyze Carefully

Sigma Solve, a microcap IT software company, recently announced its financial results for the quarter ending March 2024. The stock call by MarketsMOJO for Sigma Solve is ‘Sell’.

According to the financial report, Sigma Solve’s performance for the quarter has remained flat, with a score of -2 compared to 3 in the previous quarter. However, there are some positive aspects to the company’s financials.

The company’s Profit After Tax (PAT) for the half-yearly period has shown a growth of 26.37% year on year, reaching Rs 9.25 crore. The near-term trend for PAT is also positive. Additionally, Sigma Solve has been distributing higher dividends from its profits, with the Dividend per Share (DPS) being the highest at Rs 0.50 in the last five years.

On the other hand, there are some areas of concern for Sigma Solve based on its financials. The Profit Before Tax less Other Income (PBT) for the quarter has fallen by -20.3% compared to the average PBT of the previous four quarters. The company’s Operating Cash Flow for the year has also decreased, reaching its lowest at Rs 7.40 crore in the last three years. The net sales for the quarter have also shown a negative trend, reaching its lowest at Rs 16.00 crore in the last five quarters. The Operating Profit (PBDIT) for the quarter has also decreased, reaching its lowest at Rs 4.74 crore. The company’s efficiency has also deteriorated, with the Operating Profit Margin for the quarter being the lowest at 29.63%. The near-term trend for PBT is also negative.

Overall, Sigma Solve’s financial performance for the quarter ending March 2024 has been mixed, with some positive and negative aspects. Investors are advised to carefully analyze the company’s financials before making any investment decisions.