Syschem (India) Reports Record Net Sales, But Concerning Decline in Profit and Cash Flow

Syschem (India), a microcap company in the chemicals industry, recently announced its financial results for the quarter ending June 2024. The company's net sales for the quarter were at Rs 87.53 crore, showing a growth of 103.09% compared to the same quarter last year. This is the highest net sales the company has achieved in the last five quarters, indicating a positive sales trend in the near term.

However, the company's profit before tax less other income (PBT) for the quarter was at Rs 0.13 crore, a decrease of 92.26% compared to the same quarter last year. This is a concerning trend, as the company's PBT has been falling each quarter in the last five quarters. The operating cash flow for the company has also been consistently decreasing over the last three years, with the latest figure at Rs -25.65 crore. This indicates a decline in the company's cash revenues from business operations.

The operating profit margin for the quarter was at its lowest at 0.93%, showing a decline in the company's efficiency. The operating profit (PBDIT) for the quarter was also at its lowest in the last five quarters at Rs 0.81 crore. The company's short-term liquidity is also deteriorating, with its cash and cash equivalents at its lowest in the last six half-yearly periods at Rs 0.10 crore.

MarketsMOJO has given a 'Sell' call for Syschem (India) based on its financial performance in the quarter ending June 2024. The company's score has fallen from 2 to 0 in the last three months, indicating a flat financial performance. Investors should closely monitor the company's financials and take a cautious approach before making any investment decisions.