Cerebra Integrated Technologies' Financial Performance Shows Negative Trend in Q3 2023

Cerebra Integrated Technologies, a microcap IT hardware company, recently announced its financial results for the quarter ending December 2023. The company's performance has been deemed as Very Negative, with a score of -36, which has improved from -40 in the last three months.

One of the major concerns for Cerebra Integr. is its ability to manage interest payments, with the Operating Profit to Interest ratio being the lowest at -11.70 times and falling each quarter in the last five quarters. This indicates a deteriorating financial situation for the company.

The Profit Before Tax less Other Income (PBT) for the quarter was at Rs -21.82 crore, which is a significant decrease of -286.2% compared to the average PBT of the previous four quarters. This trend is expected to continue in the near term.

Similarly, the Profit After Tax (PAT) for the quarter was at Rs -21.78 crore, a decrease of -317.6% compared to the average PAT of the previous four quarters. The company's Operating Profit (PBDIT) for the quarter was also at its lowest at Rs -20.00 crore, with a negative trend in the near term.

The company's Debt-Equity Ratio has also been a cause for concern, with it being the highest at 0.17 times and growing each half year in the last five periods. This indicates that the company is borrowing more to fund its operations, which may lead to a stressed liquidity situation.

The Inventory Turnover Ratio for the company has also been on a decline, with it being the lowest at 1.37 times and falling each half year in the last five periods. This indicates a slower pace of selling inventory for the company.

The Net Sales for the quarter were at Rs 11.98 crore, a decrease of -6.3% compared to the average Net Sales of the previous four quarters. The Operating Profit Margin for the quarter was also at its lowest at -166.94%, indicating a decline in the company's efficiency.

The Earnings per Share (EPS) for the quarter were at its lowest at Rs -2.66, indicating a declining profitability for the company and lower earnings for shareholders.

In terms of liquidity, the company's Cash and Cash Equivalents for the half year were at its lowest at Rs 1.01 crore, indicating a deteriorating short-term liquidity situation. The Debtors Turnover Ratio for the half year was also at its lowest at 0.41 times, indicating a slower pace of settling its debtors.

Overall, Cerebra Integrated Technologies has seen a negative trend in its financial performance for the quarter ending December 2023. With a 'Strong Sell' call by MarketsMOJO, investors may want to closely monitor the company's financials before making any investment decisions.