CG-VAK Software & Exports Reports Decline in Q3 Financial Results

CG-VAK Software & Exports, a microcap IT software company, recently declared its financial results for the quarter ended September 2023. The company's net sales saw a decline of -2.70% compared to the previous quarter, while the consolidated net profit also decreased by -21.52%. The operating profit (PBDIT) excluding other income also saw a decline of -26.75%.

The company's interest expenses increased by 22.22% in the quarter, compared to no interest expenses in the previous quarter. This has resulted in a decrease in the operating profit margin (excluding other income) from the previous quarter.

MarketsMOJO has given a 'Hold' call for CG-VAK Software's stock, based on its financial performance in the quarter. The company's score has fallen from 4 to -11 in the last 3 months, indicating a negative trend.

The company's profit before tax (PBT) less other income has also seen a decline of -29.1% compared to the average PBT of the previous four quarters. The operating profit (PBDIT) has also reached its lowest point in the last five quarters. The company's efficiency has deteriorated, as seen by the decline in the operating profit margin.

The earnings per share (EPS) have also decreased to its lowest point in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. The company's short-term liquidity has also deteriorated, with its cash and cash equivalents reaching its lowest point in the last six half-yearly periods.

The debtors turnover ratio has also decreased, indicating a slower pace of settling its debtors. Based on the financial results for the quarter, it is evident that CG-VAK Software & Exports has seen a negative performance.