Informed Technologies India reports positive financial results for Q2 2024, but concerns remain

Informed Technologies India, a microcap company in the BPO/ITeS industry, has recently announced its financial results for the quarter ending September 2024. The company has reported a positive performance in the second quarter of the fiscal year 2024-2025, with a score of 8 out of 13 in the last three months.

According to the financials, Informed Technologies India has shown a significant increase in its Profit After Tax (PAT) for the quarter, reaching a high of Rs 1.24 crore in the last five quarters. This indicates a positive trend in the company's near-term profitability. Additionally, the company's Earnings per Share (EPS) have also seen a rise, reaching a high of Rs 2.97 in the last five quarters. This shows that the company has been able to generate higher earnings for its shareholders.

However, there are some areas that need improvement for Informed Technologies India. The company's Operating Cash Flow has been consistently falling in the last three years, with the lowest being Rs -1.34 crore in the last fiscal year. This indicates a decline in the company's cash revenues from business operations. Moreover, the company's Non Operating Income for the quarter is 109.64% of its 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 Non Operating Income for the quarter has also seen a significant increase, reaching a high of Rs 1.82 crore in the last five quarters.

In conclusion, while Informed Technologies India has shown a positive financial performance in the recent quarter, there are some areas that need to be addressed for sustainable growth in the future. Investors should carefully consider these factors before making any investment decisions. MarketsMOJO has given a 'Sell' call for the company's stock based on its analysis of the financials.