Are Andrew Yule & Co latest results good or bad?

Andrew Yule & Company has reported its financial results for the quarter ending June 2025, showcasing a complex picture of performance. The Profit After Tax (PAT) reached Rs 20.14 crore, reflecting a substantial year-on-year growth of 889.8%, marking the highest PAT in the last five quarters. This indicates a notable improvement in profitability. Additionally, the Earnings per Share (EPS) peaked at Rs 0.41, suggesting efforts to enhance shareholder returns.
However, the financial report also reveals significant challenges. The Profit Before Tax (PBT), adjusted for other income, fell to Rs -34.17 crore, indicating a decline of 92.18% year-on-year, which raises concerns about operational performance. Furthermore, interest costs increased to Rs 4.99 crore, suggesting a rise in borrowings, and the operating profit to interest ratio dropped to its lowest in five quarters at -5.54 times, highlighting potential difficulties in managing interest payments.

The company also reported that non-operating income constituted 233.79% of PBT, with a record high of Rs 59.71 crore, which may not be a sustainable revenue source. Overall, while Andrew Yule & Company has shown significant growth in PAT and EPS, the operational metrics and rising interest costs point to underlying challenges.

In light of these results, the company saw an adjustment in its evaluation. The net sales demonstrated a growth of 1.10% compared to the previous year, contrasting with a decline of 5.21% in the same quarter last year. However, the operating profit (excluding other income) showed a decline, and the operating profit margin also reflected a negative trend. These mixed results highlight the need for careful consideration of both the growth and challenges faced by the company.