Are Azad Engineering latest results good or bad?

Azad Engineering has reported its financial results for the quarter ending March 2025, showcasing notable growth across several key metrics. The company achieved net sales of Rs 126.93 crore, reflecting a 20% increase compared to the average of the previous four quarters, and consistent growth has been observed over the last five quarters. The operating profit reached Rs 45.59 crore, resulting in an operating profit margin of 35.92%, which is the highest recorded in the last five quarters.
Profit Before Tax (PBT) stood at Rs 32.50 crore, and Profit After Tax (PAT) was Rs 25.27 crore, with growth rates of 29% and 31.3%, respectively, compared to the previous four-quarter averages. However, it is important to note that while the company has shown strong operational efficiency and a positive growth trajectory, there has been a rise in interest costs, which increased by 25.64% over the last six months.

In terms of quarterly performance, there was a QoQ growth of 5.35% in net sales for the quarter ended March 2025, which is lower than the previous quarter's growth rate. Similarly, the consolidated net profit experienced a QoQ growth of 5.64%, also reflecting a decrease from the prior quarter's growth rate. The operating profit margin remained relatively stable, indicating consistent operational performance.

Overall, Azad Engineering's results indicate a strong operational foundation, despite the noted adjustments in evaluation. The company continues to demonstrate resilience and growth potential in the heavy electrical equipment industry.