Xchanging Solutions reports mixed financial performance

Xchanging Solutions, a smallcap BPO/ITeS company, recently announced its financial results for the quarter ended September 2023. The company's net sales saw a slight decline of -2.17% compared to the previous quarter, while its consolidated net profit showed a significant growth of 254.18%. However, the operating profit (PBDIT) excluding other income saw a decrease of -16.82%.

The company's interest remained unchanged from the previous quarter. The operating profit margin (excluding other income) also saw a decline from the previous quarter. Overall, Xchanging Solutions showed a flat financial performance in the quarter.

Despite this, the company's score has improved from -19 to -5 in the last three months. This can be attributed to the positive trends in key financial indicators. The profit after tax (PAT) for the quarter was at Rs 13.83 crore, showing a growth of 163.8% compared to the average PAT of the previous four quarters. The company's earnings per share (EPS) also showed a positive trend, reaching its highest at Rs 1.24 in the last five quarters.

However, there are some areas of concern for Xchanging Solutions. The operating cash flow has been consistently falling in the last three years, with the lowest at Rs 9.54 crore in the last annual period. The company's short-term liquidity has also deteriorated, with its cash and cash equivalents at its lowest in the last six half-yearly periods. Additionally, the non-operating income has shown a significant increase, which may not be sustainable in the long run.

Overall, Xchanging Solutions has shown a mixed financial performance in the quarter ended September 2023. While there are some positive trends in key indicators, there are also areas of concern that the company needs to address. Investors are advised to hold their stock in Xchanging Solutions, as recommended by MarketsMOJO.