Does Quintegra Solutions Limited’s (NSE:QUINTEGRA) -39.99% Earnings Drop Reflect A Longer Term Trend?

Measuring Quintegra Solutions Limited’s (NSEI:QUINTEGRA) track record of past performance is a valuable exercise for investors. It allows us to understand whether or not the company has met or exceed expectations, which is an insightful signal for future performance. Today I will assess QUINTEGRA’s recent performance announced on 31 December 2017 and compare these figures to its historical trend and industry movements. Check out our latest analysis for Quintegra Solutions

Was QUINTEGRA’s weak performance lately a part of a long-term decline?

For the most up-to-date info, I use data from the most recent 12 months, which annualizes the most recent half-year data, or in some cases, the latest annual report is already the most recent financial year data. This method enables me to analyze different stocks on a similar basis, using new information. For Quintegra Solutions, its latest trailing-twelve-month earnings is ₹29.04M, which, relative to the prior year’s level, has plunged by a substantial -39.99%. Given that these values may be fairly myopic, I have calculated an annualized five-year figure for Quintegra Solutions’s earnings, which stands at -₹183.22M This shows that though earnings declined against the prior year, over the past couple of years, Quintegra Solutions’s profits have been rising on average.

NSEI:QUINTEGRA Income Statement May 18th 18
NSEI:QUINTEGRA Income Statement May 18th 18
What’s the driver of this growth? Let’s see if it is merely because of an industry uplift, or if Quintegra Solutions has experienced some company-specific growth. In the past couple of years, Quintegra Solutions grew bottom-line, while its top-line declined, by successfully managing its costs. This has caused to a margin expansion and profitability over time. Scanning growth from a sector-level, the IN it industry has been growing, albeit, at a unexciting single-digit rate of 7.74% over the previous twelve months, and a substantial 13.36% over the last five years. This means that whatever uplift the industry is deriving benefit from, Quintegra Solutions has not been able to realize the gains unlike its average peer.

What does this mean?

While past data is useful, it doesn’t tell the whole story. Companies that are profitable, but have volatile earnings, can have many factors impacting its business. I suggest you continue to research Quintegra Solutions to get a more holistic view of the stock by looking at:

  1. Financial Health: Is QUINTEGRA’s operations financially sustainable? Balance sheets can be hard to analyze, which is why we’ve done it for you. Check out our financial health checks here.
  2. Other High-Performing Stocks: Are there other stocks that provide better prospects with proven track records? Explore our free list of these great stocks here.
NB: Figures in this article are calculated using data from the trailing twelve months from 31 December 2017. This may not be consistent with full year annual report figures.