Are Black Box latest results good or bad?

Black Box has reported its financial results for the quarter ending March 2025, showcasing a mix of positive developments and challenges. The company achieved net sales of Rs 1,544.58 crore, representing a 2.85% increase compared to the previous quarter, marking the highest sales figure in the last five quarters. Additionally, the Profit After Tax (PAT) reached Rs 76.77 crore, reflecting a 28.4% growth compared to the average PAT of Rs 59.80 crore over the prior four quarters, resulting in an earnings per share (EPS) of Rs 3.57, also the highest in this timeframe.
However, Black Box is encountering rising interest expenses, which surged to Rs 47.22 crore, a notable 50.81% increase quarter on quarter. This rise in borrowing costs has contributed to a decline in the operating profit to interest ratio, which fell to 3.02 times, the lowest level in five quarters, indicating a potential challenge in managing interest payments. Furthermore, while non-operating income peaked at Rs 1.52 crore, concerns regarding its sustainability have been raised.

Overall, the financial results reflect a complex scenario for Black Box, with the company experiencing an adjustment in its evaluation amidst these operational trends.