Are Allied Digital latest results good or bad?

Allied Digital Services has reported its financial results for the quarter ending March 2025, highlighting a mix of trends that warrant attention. While the net sales for the latest six months reached Rs 424.92 crore, reflecting a year-on-year growth of 22.16%, this positive aspect is overshadowed by significant declines in profitability metrics.
In the most recent quarter, net sales experienced a quarter-over-quarter decline of 7.35%, contrasting with a previous growth of 8.64% in December 2024. The operating profit also reported a substantial drop, with an operating profit margin of -4.55%, indicating challenges in operational efficiency. The Profit Before Tax (PBT) fell to Rs -26.55 crore, marking a notable decrease compared to the average PBT of the previous four quarters, while the Profit After Tax (PAT) dropped to Rs -7.61 crore, reflecting a similar trend.

Additionally, interest expenses rose significantly by 69.36% over the preceding nine months, which raises concerns about the company's financial stability. Non-operating income accounted for a large portion of PBT, suggesting potential issues with the sustainability of the business model.

Overall, the financial results indicate that Allied Digital Services is facing considerable challenges in profitability despite some growth in sales. Furthermore, the company saw an adjustment in its evaluation, reflecting the impact of these operational trends.