Funny Software Reports Sharp Revenue Decline in Q1 FY23
The IT company's revenue fell by a third sequentially, while profit remained at zero for the second straight quarter.
Funny Software's Q1 FY23 revenue dropped sharply from the previous quarter. The company continued to report zero profit, raising questions about its near-term earnings trajectory.
Funny Software's first-quarter results for fiscal 2023 show a significant step back in its top-line performance. Revenue fell sharply from the previous quarter, while the company continued to report zero profit, highlighting ongoing challenges in translating sales into earnings.
The company's revenue for the quarter ended June 2022 was ₹0.06 crore, a 33.3% decline from the ₹0.09 crore reported in the March 2022 quarter. Profit after tax (PAT) remained at zero for the second consecutive quarter, resulting in a net profit margin of 0%.
Revenue (₹ Cr)
Profit (₹ Cr)
Net Profit Margin
| Metric | CurrentQ1 FY23 | PreviousQ4 FY22 |
|---|---|---|
| Period | Quarter ended June 2022 | Quarter ended March 2022 |
| Revenue (₹ Cr) | 0.06 | 0.09 |
| Profit (₹ Cr) | 0.00 | 0.00 |
| Net Profit Margin | 0.0% | 0.0% |
Key Points
- The company maintains a very strong balance sheet, with a low debt-to-equity ratio of 0.05 and a high current ratio of 9.4.
- Return on Equity (ROE) stands at a modest 3%.
- The stock trades at a Price-to-Earnings (P/E) ratio of 37.0, which is a 26.7% premium to the IT industry average of 29.2.
The current valuation premium suggests the market may be pricing in a future recovery that these quarterly earnings have yet to demonstrate.
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· FUNNY SOFTWARE
(BSE)
ISIN: INE105R01013
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