Are Bihar Sponge latest results good or bad?

Bihar Sponge Iron has released its financial results for the quarter ending March 2025, showing a notable growth in net sales, which reached Rs 98.49 crore, reflecting a significant increase compared to the average of Rs 73.76 crore over the previous four quarters. This growth in sales is a positive operational trend for the company.
However, the financial results also highlight some challenges. The profit before tax (PBT), excluding other income, fell to Rs -5.02 crore, which is a decline from the average PBT of Rs -4.12 crore in the previous four quarters. Additionally, the company reported a high reliance on non-operating income, which constituted 249.40% of PBT, indicating that non-business activities contributed significantly to its financial results. This raises concerns regarding the sustainability of its income model.

In terms of quarterly performance, the company reported a quarter-on-quarter growth in net sales of 84.78% compared to the previous quarter. Standalone net profit also showed a quarter-on-quarter growth of 77.78%. However, the operating profit (PBDIT) excluding other income saw a decline of 44.79% compared to the previous quarter, which could indicate underlying operational challenges.

Overall, while Bihar Sponge Iron has experienced growth in sales and net profit, the decline in operating profit and heavy reliance on non-operating income suggest that the company faces significant operational hurdles. Additionally, the company saw an adjustment in its evaluation over the past three months.