Xchanging Solutions' Q2 financials show growth in PAT, but concerns remain.

Xchanging Solutions, a smallcap BPO/ITeS company, 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, Xchanging Solutions has seen a flat performance in the second quarter of the fiscal year 2024-2025. The company's score has fallen from 8 to 5 in the last three months.

However, there are some positive aspects to the company's financials. The Profit After Tax (PAT) for the half-yearly period has shown a significant growth of 320.78% year on year, reaching Rs 20.45 crore. This trend is expected to continue in the near future. Additionally, the company has already surpassed its PAT for the previous twelve months in just half a year.

The net sales for the quarter have also shown a positive trend, reaching the highest in the last five quarters at Rs 44.46 crore.

On the other hand, there are some areas of concern for Xchanging Solutions. The interest cost has increased by 77.05% in the last half-yearly period, indicating a rise in borrowings. The company's operating cash flow has also decreased, reaching its lowest in the last three years at Rs -12.06 crore. Furthermore, the company's short-term liquidity has deteriorated, with its cash and cash equivalents reaching the lowest in the last six half-yearly periods at Rs 296.08 crore. The debt-equity ratio has also reached its highest in the last five half-yearly periods, indicating increased borrowing and a potential strain on the company's liquidity.

Overall, Xchanging Solutions has shown a mixed performance in the second quarter of the fiscal year 2024-2025. While there are some positive aspects to its financials, there are also some areas of concern that investors should keep in mind.