Indian Infotech's Q3 financials show strong growth, but concerns over operating cash flow

Indian Infotech, a microcap company in the trading industry, has recently announced its financial results for the quarter ending September 2024. The company has shown a positive performance in this quarter, with a score of 10 compared to -3 in the previous quarter.

According to the financials, Indian Infotech has seen a significant growth in its net sales, which have increased by 167.03% year on year. This is a very positive trend for the company. The profit before tax less other income (PBT) has also shown a remarkable growth of 1234.7% compared to the average PBT of the previous four quarters. The same trend can be seen in the profit after tax (PAT), which has grown by 1346.9% compared to the average PAT of the previous four quarters.

In addition, the company's net sales for the half-yearly period have already surpassed the sales of the previous twelve months, which is a strong indication of its growth potential. The operating profit (PBDIT) for this quarter is also the highest in the last five quarters, showing a positive trend in the near term. The same can be said for the PBT and PAT, which are also at their highest in the last five quarters.

However, the company's operating cash flow for the year has been the lowest in the last three years, with a decline each year. This is an area of concern for Indian Infotech, as it indicates a decrease in cash revenues from business operations.

In conclusion, Indian Infotech has shown a strong financial performance in the quarter ending September 2024, with positive trends in net sales, PBT, and PAT. However, the company needs to address its declining operating cash flow to sustain its growth in the long term. Based on these financials, MarketsMOJO has given a 'Strong Sell' call for Indian Infotech's stock.