Are A2Z Infra Engg. latest results good or bad?

A2Z Infra Engineering has reported its financial results for the quarter ending March 2025, highlighting notable changes in its performance metrics. The company's Profit Before Tax (PBT) reached Rs 5.59 crore, a significant shift from the average PBT of Rs -15.57 crore over the previous four quarters. Similarly, the Profit After Tax (PAT) rose to Rs 5.79 crore, compared to an average of Rs -4.93 crore in the prior periods.
The operating profit also showed a positive trend, with the highest quarterly figure recorded at Rs 9.10 crore and an operating profit margin of 10.04%, which is the best performance in the last five quarters. Additionally, the company demonstrated improved management of interest payments, achieving an operating profit to interest ratio of 4.04 times.

However, A2Z Infra Engineering is facing challenges, as interest expenses rose to Rs 2.25 crore, reflecting a quarter-on-quarter increase of 27.12%, which suggests higher borrowings. Furthermore, a significant portion of the PBT, 68.22%, was derived from non-operating income, raising questions about the sustainability of its business model.

The company saw an adjustment in its evaluation during this reporting period, indicating a shift in its financial standing. Overall, the data presents a mixed picture, with substantial gains in profitability and operating metrics, while also highlighting concerns regarding rising interest expenses and reliance on non-operating income.