Are Allcargo Gati latest results good or bad?

Allcargo Gati's financial results for the quarter ending March 2025 present a mixed picture. The company reported a Profit After Tax (PAT) of Rs 8.77 crore, which marks a notable increase compared to the average PAT of Rs -0.91 crore from the previous four quarters. This PAT figure is the highest recorded in the last five quarters, suggesting a positive trend in profitability.
However, the company encountered challenges in other financial metrics. Net sales for the quarter were Rs 385.35 crore, which is the lowest in the last five quarters and reflects a decline of 5.6% from the previous average of Rs 408.21 crore. Additionally, the operating profit was reported at Rs 9.61 crore, also the lowest in the same timeframe, leading to an operating profit margin of just 2.49%. Furthermore, the Profit Before Tax (PBT) was recorded at Rs -13.49 crore, indicating a negative trend in this area.

The reliance on non-operating income, which constituted 262.53% of PBT, raises concerns regarding the sustainability of Allcargo Gati's business model. Overall, while there is an improvement in PAT, significant challenges remain in sales and operational efficiency.

In terms of quarterly growth, the company experienced a -1.81% change in net sales compared to the previous quarter, while the consolidated net profit showed a substantial growth of 631.93%. The operating profit margin also reflected a decline, indicating ongoing operational challenges. As a result of these mixed results, the company saw an adjustment in its evaluation.