Tera Software Reports Flat Q3 FY24-25 Results Amidst Mixed Financial Trends

Tera Software, a microcap player in the IT software industry, has recently reported its financial results for the quarter ending December 2024. The results indicate a flat performance for Q3 FY24-25, with a notable adjustment in its evaluation score, which has shifted from 7 to 4 over the past three months.
The financial data reveals some positive trends for Tera Software. The Profit After Tax (PAT) for the half-year stands at Rs 3.66 crore, reflecting a significant year-on-year growth of 294.03%. Additionally, net sales for the nine-month period reached Rs 74.08 crore, marking a year-on-year increase of 20.77%. These figures suggest a favorable near-term sales trend.

However, there are also areas of concern. The interest expense for the half-year has risen to Rs 2.23 crore, growing by 57.04% compared to the previous half-year period, indicating increased borrowings. Furthermore, non-operating income has constituted 38.43% of Profit Before Tax (PBT) in the latest quarter, with the highest quarterly figure of Rs 1.08 crore seen in the last five quarters. This reliance on non-business income raises questions about the sustainability of the company's financial model.

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