MT Educare's Q3 financial results show decline.

MT Educare, a microcap educational institution, recently announced its financial results for the quarter ended September 2023. The company's net sales saw a growth of 11.59% compared to the previous quarter, but it was a significant decrease from the same quarter last year, which saw a growth of 38.73%. The consolidated net profit also saw a decline of 9.38% compared to the previous quarter.

The operating profit (PBDIT) excluding other income also saw a decrease of 6.16% compared to the previous quarter. However, the company's operating profit margin (excluding other income) showed improvement from the previous quarter.

MarketsMOJO, a leading financial analysis firm, has given a 'Strong Sell' call for MT Educare's stock. The company's financial performance for the quarter has been negative, with a score of -18, a decrease from -17 in the last three months.

The financial analysis highlights that the profit before tax (PBT) has fallen by 72.81% year on year, and the net sales have also decreased by 17.01% year on year. The profit after tax (PAT) for the half-yearly period has also seen a negative trend, with a growth of -24.32% year on year.

The company's interest costs have increased by 24.63% over the previous half-yearly period, indicating a rise in borrowings. The debt-equity ratio has also been consistently increasing in the last five half-yearly periods, reaching its highest at 2.65 times. This suggests that the company is relying more on borrowings to fund its operations, which may lead to a stressed liquidity situation.

Moreover, the company's cash and cash equivalents have been consistently decreasing in the last six half-yearly periods, with the current period showing the lowest at Rs 6.39 crore. This indicates a deteriorating short-term liquidity situation for MT Educare.

In conclusion, MT Educare's financial performance for the quarter ended September 2023 has been negative, with a 'Strong Sell' call from MarketsMOJO. The company's declining profits, increasing interest costs, and rising debt-equity ratio raise concerns about its financial stability.