Systematix Corp. reports strong Q2 results, concerns over reliance on non-business activities.

Systematix Corporate Services, a smallcap finance and non-banking financial company (NBFC), has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Systematix Corp. has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 6 to 16 in the last three months.

One of the key factors contributing to this positive performance is the growth in net sales, which has increased by 74.66% year on year to Rs 65.95 crore. The company's profit after tax (PAT) has also seen a significant growth of 74.8% over the average PAT of the previous four quarters, reaching Rs 22.14 crore in the quarter ending September 2024.

On the other hand, the company's profit before tax (PBT) has decreased by -56.1% compared to the average PBT of the previous four quarters. This is a concerning trend for the near term. Additionally, the company's non-operating income, which is 76.78% of the PBT, is at its highest in the last five quarters. This indicates a high reliance on non-business activities, which may not be sustainable in the long run.

Despite these challenges, Systematix Corp. has a strong cash position with Rs 181.45 crore in cash and cash equivalents in the last six half-yearly periods. This shows an improvement in short-term liquidity.

Overall, Systematix Corp. has shown positive financial performance in the quarter ending September 2024. However, investors should keep an eye on the company's reliance on non-business activities and the decreasing trend in PBT.