Surana Telecom's Q3 Financial Report Shows Mixed Results, Investors Advised to Proceed with Caution

Surana Telecom and Power, a microcap company in the cable industry, recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Sell' call by MarketsMOJO.

According to the financial report, Surana Telecom's performance for the quarter has remained flat, with no significant changes in the last three months. However, there are some positive aspects to the company's financials.

The Profit After Tax (PAT) for the quarter has shown a growth of 224.6% year on year, indicating a positive trend in the near term. The company's Operating Cash Flow for the year has also been the highest at Rs 14.69 crore, showing a consistent growth in the last three years. This indicates that the company has been able to generate higher cash revenues from its business operations.

Another positive aspect is the Debtors Turnover Ratio, which has been the highest at 6.56 times and has shown growth in the last five half yearly periods. This shows that the company has been able to settle its debtors faster.

However, there are some areas of concern for Surana Telecom. The Profit Before Tax less Other Income (PBT) for the quarter has shown a significant decline of -1092.31% year on year, indicating a negative trend in the near term. The Net Sales for the half year have also shown a decline of -42.18% year on year, indicating a negative trend in the near term. The Operating Profit (PBDIT) for the quarter has been the lowest in the last five quarters, showing a negative trend in the near term. The Operating Profit Margin for the quarter has also been the lowest in the last five quarters, indicating a deterioration in the company's efficiency.

Moreover, the Non Operating Income for the quarter is 153.97% of the Profit Before Tax (PBT), which shows that the company's income from non-business activities is high and not sustainable in the long run. Additionally, the company's Cash and Cash Equivalents for the half year have been the lowest in the last six half yearly periods, indicating a deteriorating short term liquidity.

In conclusion, while Surana Telecom and Power has shown some positive aspects in its financials, there are also some areas of concern that investors should take into consideration before making any investment decisions.