Are Ashiana Housing latest results good or bad?

Ashiana Housing has reported notable financial results for the quarter ending June 2025, reflecting a significant year-on-year growth across various key metrics. The company achieved net sales of Rs 292.76 crore, which represents a remarkable increase of 137.84% compared to the same quarter last year. This marks the highest quarterly sales figure in the last five quarters, indicating a strong near-term sales trend.
Profit Before Tax (PBT) also showed substantial growth, reaching Rs 8.10 crore, which is an increase of 181.08% year-on-year. Profit After Tax (PAT) surged to Rs 12.72 crore, reflecting a significant growth of 333.4% compared to the previous year. Furthermore, the company's cash and cash equivalents reached Rs 393.40 crore, the highest level in the last six half-yearly periods, suggesting improved short-term liquidity.

However, there are challenges that Ashiana Housing faces. The inventory turnover ratio has declined to 0.23 times, indicating a slowdown in the pace of selling inventory. Additionally, non-operating income constitutes 55.12% of PBT, raising concerns about the sustainability of the business model. The debtors turnover ratio has also decreased to 13.25 times, reflecting a slower pace in settling debts.

Overall, while Ashiana Housing has shown significant growth in sales and profits, the company has experienced some operational challenges that may impact its future performance. The company saw an adjustment in its evaluation based on these results.