Compucom Software's Financial Performance Sees Significant Decline in Q3 2024

Compucom Software, a microcap IT education company, has recently declared its financial results for the quarter ending September 2024. According to the data, the company has seen a significant decline in its financial performance, with a score of -22 compared to -14 in the previous quarter.

The net sales for the quarter have fallen by 49.6% to Rs 8.57 crore, which is much lower than the average net sales of the previous four quarters at Rs 17.00 crore. This indicates a very negative trend in the company's sales in the near term.

The profit after tax (PAT) for the half-yearly period has also seen a decline of 59.29% year on year, standing at Rs 0.30 crore. This trend is also expected to continue in the near term.

The company's operating cash flow for the last three years has been the lowest at Rs -33.19 crore, indicating a decrease in cash revenues from business operations. Additionally, the non-operating income for the quarter is 161.17% of the profit before tax (PBT), which suggests that the company's income from non-business activities is high and may not be a sustainable business model.

The debtors turnover ratio for the half-yearly period is also at its lowest in the last five periods, standing at 0.58 times. This indicates a slower pace in settling the company's debtors.

Moreover, the non-operating income for the quarter is at its highest in the last five quarters at Rs 1.66 crore. While this may seem like a positive trend, it is important to note that increased income from non-business activities may not be sustainable for the company.

Based on these financial results, MarketsMOJO has given a 'Sell' call for Compucom Software's stock. It is important for investors to carefully consider these facts before making any investment decisions.