Softtech Engineers Announces Q2 FY25 Financial Results, Shows Mixed Performance

Softtech Engineers, a microcap IT software company, recently announced its financial results for the quarter ending September 2024. The stock has been given a ‘Hold’ call by MarketsMOJO.

The company’s performance for the quarter has been flat, with a score of -5 compared to 0 in the previous quarter. However, there are some positive aspects to note from the financials.

Softtech Engineers recorded its highest net sales in the last five quarters at Rs 22.95 crore, showing a positive trend in the near term. The net sales have also grown by 20.03% year on year, indicating a positive trend in the company’s sales performance.

On the other hand, there are some areas of concern for Softtech Engineers. The company’s operating profit to interest ratio has been the lowest in the last five quarters at 4.36 times, indicating a deteriorating ability to manage interest payments. The operating profit margin has also been the lowest at 24.88%, showing a decline in the company’s efficiency.

Moreover, the profit before tax less other income (PBT) has been the lowest at Rs 0.36 crore in the last five quarters, with a negative trend in the near term. The earnings per share (EPS) have also been the lowest at Rs 0.45, indicating a decline in profitability and lower earnings for shareholders.

Overall, Softtech Engineers has shown a mixed performance in the quarter ending September 2024. While there are some positive aspects to note, there are also areas of concern that the company needs to address in order to improve its financial performance. Investors are advised to hold their positions in the stock for now, as recommended by MarketsMOJO.