Share the post "Educomp Solutions ‘s Q1 Report: Profit Decreases by 44.8% YoY"
Highlights
- The presented financial data is Standalone to provide a comprehensive overview of the company performance.
- Sales over the Year and quarter: The company’s sales declined by -7.15 % over the year, substantial increase in net sales/revenue by 122.49 %.
- Income over the Year and quarter: There has been decline in other income over the past year which is -83.02 %, Marginal increase in other income during this quarter, up by 33.14%.
- Profit over the Year and quarter: Significant improvement in profitability for Educomp Solutions Limited. Notable increase of 44.13 % in net profit Year to Year, Educomp Solutions Limited’s profitability dropped by -88.68 % Quarter to Quarter.
- EPS over the Year and quarter: EPS increased by 50.00 % Year to Year. EPS decreased by -88.46 % in previous quarter. Analysis needed for shareholder value.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1.385 Cr | Rs. 0.578 Cr | Rs. 1.286 Cr | + 122.49 % | -7.15 % |
| Expenses | Rs. 2.49 Cr | Rs. 15.18 Cr | Rs. 1.47 Cr | -90.32 % | -40.96 % |
| Operating Profit | Rs. -1.11 Cr | Rs. -14.6 Cr | Rs. -0.18 Cr | + 98.77 % | + 83.78 % |
| OPM % | -80.14 % | -2525.95 % | -14 % | + 2511.95 % | + 66.14 % |
| Other Income | Rs. 1.372 Cr | Rs. 0.175 Cr | Rs. 0.233 Cr | + 33.14 % | -83.02 % |
| Interest | Rs. 1.45 Cr | Rs. 1.46 Cr | Rs. 1.65 Cr | + 13.01 % | + 13.79 % |
| Depreciation | Rs. 0.07 Cr | Rs. 0.07 Cr | Rs. 0.21 Cr | + 200 % | + 200 % |
| Profit before tax | Rs. -1.26 Cr | Rs. -15.96 Cr | Rs. -1.81 Cr | + 88.66 % | -43.65 % |
| Tax % | -0 % | -0 % | -0 % | 0 % | 0 % |
| Net Profit | Rs. -1.25 Cr | Rs. -15.95 Cr | Rs. -1.81 Cr | + 88.65 % | -44.8 % |
| EPS in Rs | Rs. -0.1 | Rs. -1.3 | Rs. -0.15 | + 88.46 % | -50 % |
Today, we’re looking at Educomp Solutions Limited’s financial performance for the Q1(Jun 2024).Starting with the top line, the company reported a significant year-over-year sales decline of -7.15 %. However, it did see a marginal increase of 122.49 % from the previous quarter. Expenses decreased slightly by -90.32 % quarter-on-quarter, aligning with the annual decline of -40.96 %. Operating profit, while up 83.78 % compared to last year, faced a quarter-on-quarter increase of 98.77 %, signaling a short-term expansion in margins.
The Operating Profit Margin (OPM) % echoes this narrative, showing resilience on an annual basis with an increase of 66.14 %, but an expansion of 2511.95 % sequentially. Other income rose by 33.14 % compared to the last quarter, despite an annual decline of -83.02 %. Interest expenses surged remarkably by 13.01 % from the previous quarter, yet the year-over-year increase remains at a moderate 13.79 %. Depreciation costs climbed by 200 % quarter-on-quarter, whereas on an annual scale, they saw an increase of 200 %. Profit before tax declined annually by -43.65 % but saw an increase from the preceding quarter by 88.66 %.
Net profit fell by -44.8 % year-on-year but experienced a 88.65 % expansion from the last quarter. And finally, Earnings Per Share (EPS) displayed an annual downturn of -50 % but a quarterly rise of 88.46 %. In summary, Educomp Solutions Limited’s annual performance indicates steady growth, although the quarter-on-quarter figures suggest some areas may require strategic attention.
| Metrics | Previous Year | Previous Quarter | Current Quarter | Quarter to Quarter Difference | Year to Year Difference |
|---|---|---|---|---|---|
| Sales | Rs. 1.385 Cr | Rs. 0.578 Cr | Rs. 1.286 Cr | + 122.49 % | -7.15 % |
| Expenses | Rs. 2.49 Cr | Rs. 15.18 Cr | Rs. 1.47 Cr | -90.32 % | -40.96 % |
| Operating Profit | Rs. -1.11 Cr | Rs. -14.6 Cr | Rs. -0.18 Cr | + 98.77 % | + 83.78 % |
| Net Profit | Rs. -1.25 Cr | Rs. -15.95 Cr | Rs. -1.81 Cr | + 88.65 % | -44.8 % |
| EPS in Rs | Rs. -0.1 | Rs. -1.3 | Rs. -0.15 | + 88.46 % | -50 % |
In reviewing Educomp Solutions Limited’s 2024(Q1) financial snapshot, key trends emerge, shedding light on the company’s performance.Sales experienced a decrease of -7.15 % year-on-year, however, there was a minor increase of 122.49 % from the previous quarter. Expenses decreased by -40.96 % compared to the previous year, with a decrease of -90.32 % quarter-on-quarter. Operating Profit surged by 83.78 % annually, and saw a 98.77 % increase from the last quarter.
Net Profit showed yearly decrease of -44.8 %, and experienced a 88.65 % increase from the previous quarter. Earnings Per Share (EPS) fell by -50 % annually, however rose by 88.46 % compared to the last quarter. In essence, while Educomp Solutions Limited faces strong annual decline indicators, short-term improvements suggest the potential for recovery and the importance of strategic adjustments to counter market challenges effectively. That’s all for now in the financial sector.
10
3-Year Profit
11
5-Year Profit
6
10-Year Profit
2.35
Current Price
28.8
Market Cap
In analyzing the financial results for the company marked by BSE code 532696, a clear trend emerges. Over a five-year span, the company reported a profit of 11 units, which increased to 10 units in the most recent three-year period, suggesting a strong performance in the early stages of this timeframe. However, this success has been overshadowed by a trailing twelve-month (TTM) loss of 25 units, signaling significant recent challenges. Compounding this issue is the fact that the company has not reported any sales during any of the timeframes analyzed, raising important questions about its operational model and the sustainability of its current strategies. Investors have been equally wary, as reflected in the stock price performance. The company’s stock traded at 13 units over the past five years but has recently decreased to -9 units, indicating a loss of market confidence. Over the last decade, the stock price was at -23 units, pointing to longer-term concerns that could affect the company's future prospects.
The company currently holds a market cap of ₹28.8 crore, with its stock trading at ₹2.35. Historically, the stock has fluctuated between ₹4.74 / 1.79, reflecting its performance in response to market dynamics and various economic factors. The company's Price-to-Earnings (P/E) ratio stands at , indicating that the stock is perceived as highly valued by the market, possibly driven by expectations of future earnings growth. The book value per share is ₹-240, which offers insight into the company's intrinsic worth, while its dividend yield of 0.00% provides a steady return for long-term investors. Return on Capital Employed (ROCE) is %, showcasing the company’s ability to generate profits from its capital investments. Return on Equity (ROE) is %, highlighting how efficiently the company uses shareholder funds to generate profits. The debt-to-equity ratio is very low at , which is a positive indicator of financial stability. However, the company’s net cash flow of ₹-0.21 crore raises concerns about its liquidity position. The Piotroski score of 5.00 reflects the company’s overall financial health, while the Graham Number of ₹ suggests the stock's intrinsic value. Despite these factors, the Price-to-Book (P/B) ratio of indicates that the stock is trading at a premium to its book value, which might imply market optimism about the company's future growth prospects.
