Riddhi Corporate Services Reports Negative Performance in Q1 2024 Financial Results

Riddhi Corporate Services, a microcap company in the BPO/ITeS industry, recently announced its financial results for the quarter ending March 2024. According to the data released on June 3, 2024, the company has seen a negative performance in this quarter, with a score of -14, which is a slight improvement from the previous quarter's score of -15.

Despite the overall negative performance, there are some positive aspects to note from the financials. Riddhi Corporate's net sales for the quarter were the highest in the last five quarters, at Rs 52.09 crore. This indicates a positive trend in sales in the near term.

However, there are also some concerning factors in the financials. The company's Profit Before Tax (PBT) less Other Income has fallen by 90.75% year on year, with a near term trend that is very negative. Similarly, the Profit After Tax (PAT) for the half-yearly period has also decreased by 51.98% year on year, with a negative trend in the near term. The Operating Profit (PBDIT) for the quarter was the lowest in the last five quarters, and the Operating Profit Margin has also decreased, indicating a decline in the company's efficiency.

Another concerning aspect is the company's high Non Operating Income, which accounts for 84.92% of the Profit Before Tax. This suggests that the company's income from non-business activities is high, which may not be a sustainable business model in the long run.

The company's Earnings per Share (EPS) for the quarter were the lowest in the last five quarters, indicating a decline in profitability and lower earnings for shareholders. Based on these financials, MarketsMOJO has given a 'Sell' call for Riddhi Corporate's stock.