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 key performance metrics. The company's Profit Before Tax (PBT) reached Rs 5.59 crore, reflecting a significant growth compared to the average PBT of the previous four quarters, which was negative. Similarly, the Profit After Tax (PAT) surged to Rs 5.79 crore, indicating a substantial increase over the previous four-quarter average, which was also negative.
The operating profit demonstrated positive trends, with the highest quarterly figure recorded at Rs 9.10 crore and an operating profit margin of 10.04%, marking the best performance in the last five quarters. Additionally, the company's ability to manage interest payments improved, as evidenced by an operating profit to interest ratio of 4.04 times.

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

Overall, the financial results indicate a mix of positive operational trends alongside some challenges. The company saw an adjustment in its evaluation based on these results.