Vippy Spinpro's Q3 Financial Results Show Positive Growth, But Operating Cash Flow Declines

This is not a good sign.
Vippy Spinpro, a microcap textile company, has recently announced its financial results for the quarter ending September 2024. The company has shown positive performance in this quarter, with a score of 19 compared to 16 in the previous quarter.

According to the financial report, the company's Profit Before Tax less Other Income (PBT) has grown by 151.9% to Rs 4.37 crore, compared to the average PBT of the previous four quarters which was Rs 1.74 crore. This indicates a very positive trend in the near term for PBT. Similarly, the Profit After Tax (PAT) has also shown a growth of 122.1% to Rs 3.37 crore, compared to the average PAT of the previous four quarters which was Rs 1.52 crore. This shows a very positive trend in the near term for PAT.

The company's Operating Profit (PBDIT) for this quarter is the highest in the last five quarters at Rs 7.48 crore, indicating a positive trend in the near term. The same can be seen for PBT and PAT, which are also at their highest in the last five quarters.

However, the company's Operating Cash Flow for the last three years has been the lowest at Rs -13.07 crore. This indicates a decline in cash revenues from business operations, which is not a good sign for the company.

MarketsMOJO has given a 'Hold' call for Vippy Spinpro's stock, based on its financial performance in this quarter. With increasing profitability and higher earnings per share, the company has shown promising results for its shareholders. However, the decline in operating cash flow is a concern that the company needs to address in order to maintain its positive performance in the future.