Are Bhilwara Tech latest results good or bad?

Bhilwara Technical Textiles has released its financial results for the quarter ending June 2025, which present a mixed picture. The company reported net sales of Rs 5.32 crore, marking the highest quarterly sales in the last five quarters, indicating a positive near-term sales trend. This represents a significant year-on-year growth of 318.90%, contrasting sharply with the previous year's decline.
However, the profitability metrics reveal substantial challenges. The profit before tax (PBT) is reported at Rs -0.97 crore, reflecting a drastic decline of 127.79% year-on-year. Similarly, the profit after tax (PAT) has fallen to Rs 0.31 crore, down 93.2% year-on-year, indicating a very negative near-term trend for profitability. The operating profit margin, excluding other income, stands at -18.80%, showing a significant deterioration.

Moreover, the company's reliance on non-operating income is notable, as it constitutes 315.56% of PBT, raising concerns about the sustainability of its business model. Additionally, the debtors turnover ratio has reached its lowest point in the last five half-yearly periods, suggesting a slowdown in the pace of settling debts.

Overall, while Bhilwara Technical Textiles has achieved a temporary boost in sales, it faces significant financial hurdles that could impact its operational stability. The company saw an adjustment in its evaluation based on these results.