Are Benares Hotels latest results good or bad?

Benares Hotels has reported its financial results for the quarter ending June 2025, highlighting a positive performance across several key financial metrics. The company achieved net sales of Rs 25.01 crore for the quarter, reflecting a year-on-year growth of 8.74%, compared to a decline in the same quarter last year. Additionally, the standalone net profit for this period was Rs 7.58 crore, which represents a year-on-year growth of 17.88%, indicating a significant improvement in profitability.
The operating profit margin, excluding other income, was recorded at 40.06%, showing a slight increase from the previous year. Furthermore, Benares Hotels reported an impressive operating cash flow of Rs 41.86 crore, which has consistently grown over the past three years. The company also noted its highest cash and cash equivalents at Rs 89.65 crore over the last six half-year periods, suggesting enhanced short-term liquidity.

The debtors turnover ratio was recorded at 33.53 times, the highest in five half-year periods, indicating effective management of receivables. Additionally, the company announced a dividend per share of Rs 25.00, the highest in five years, reflecting its commitment to returning profits to shareholders.

However, it is worth noting that there was an adjustment in the company's evaluation, which may warrant further consideration. The increase in non-operating income, reported at Rs 1.78 crore for the latest quarter, raises questions about the sustainability of this growth. Overall, Benares Hotels' financial results demonstrate a robust operational performance, despite some areas that may require closer scrutiny.