3i Infotech Ltd: Result Analysis 

CMP: Rs.29

T: Rs.41/57

Synopsis: 3i Infotech has announced its financial results for the quarter ending December 2024, highlighting a significant Profit After Tax of Rs 40.60 crore and the highest m Profit in five quarters at Rs 7.60 crore. However, net sales declined by 5.3%, raising concerns about sustainability and liquidity. Photo: 3i Infotech Page, Facebook.

3i Infotech has recently reported its financial results for the quarter ending December 2024, showcasing a notable shift in its evaluation. The company's score has seen an adjustment, moving from a previous figure to a new level, reflecting the underlying trends in its financial performance.

In terms of positive developments, 3i Infotech recorded a Profit After Tax (PAT) of Rs.40.60 crore, marking a significant growth compared to the average PAT of the preceding four quarters. 

The operating profit metrics also indicate a favorable trend, with the Operating Profit (PBDIT) reaching its highest point in five quarters at Rs.7.60 crore. 

Additionally, the Operating Profit Margin has improved, now standing at 4.19%, suggesting enhanced operational efficiency.

Conversely, the company faced challenges, particularly in net sales, which declined by 5.3% compared to the average of the last four quarters. 

Furthermore, the reliance on non-operating income has raised concerns about sustainability, as it constituted a substantial portion of the Profit Before Tax. The cash and cash equivalents have also reached a low point, indicating potential liquidity issues.

Overall, 3i Infotech's recent financial results reflect a complex landscape of both positive trends and areas of concern, leading to a revision in its score.

Source: Marketsmojo.com