Cambridge Technology Enterprises Reports Mixed Financial Results for Q1 FY25

Cambridge Technology Enterprises, a microcap IT software company, recently announced its financial results for the quarter ending June 2024. The company’s stock has been given a ‘Hold’ call by MarketsMOJO.

According to the financial report, Cambridge Tech. has seen a negative performance in the quarter, with a score of -18 compared to 2 in the previous quarter. However, there are some positive aspects to the company’s financials. Its cash and cash equivalents have increased to Rs 54.97 crore, the highest in the last six half-yearly periods, indicating an improvement in short-term liquidity.

On the other hand, there are some areas of concern for Cambridge Tech. The interest cost has grown by 133.33% compared to the previous half-yearly period, indicating increased borrowings. The company’s profit before tax less other income (PBT) has fallen by -1871.9% compared to the average of the previous four quarters, and the profit after tax (PAT) has also seen a decline of -545.4% in the same period. The company’s ability to manage interest payments has deteriorated, with the operating profit to interest ratio being the lowest in the last five quarters.

The debt-equity ratio has also increased to 1.07 times, with each half-yearly period showing a growth in the last five periods. This suggests that the company is relying more on borrowing to fund its operations, which may lead to a stressed liquidity situation. The operating profit (PBDIT) for the quarter is also the lowest in the last five quarters, and the operating profit margin has decreased to -8.80%, indicating a decline in efficiency.

Overall, the company’s near-term financial trends are negative, with the lowest PBT and EPS in the last five quarters. This suggests a decline in profitability and lower earnings for shareholders. It is important for investors to carefully consider these financials before making any investment decisions.