Are Carraro India latest results good or bad?

Carraro India has reported its financial results for the quarter ending June 2025, revealing a mix of operational trends. The company achieved its highest quarterly net sales in the last five quarters, amounting to Rs 492.93 crore, which reflects a growth of 11.02% compared to the previous quarter. Additionally, the profit before tax (PBT) reached Rs 31.45 crore, indicating a 22.3% increase over the average PBT of the prior four quarters. The profit after tax (PAT) also showed a notable rise, hitting Rs 29.11 crore, which is a 32.1% increase compared to the previous four-quarter average. The earnings per share (EPS) reached Rs 5.12, marking the highest level in the last five quarters, suggesting improved profitability for shareholders.
However, it is important to note that the company reported a significant increase in non-operating income, which reached Rs 6.99 crore. This rise in income from non-business activities may raise questions regarding its sustainability moving forward. Furthermore, Carraro India experienced an adjustment in its evaluation over the past three months.

In terms of operating profit, the standalone net profit for the quarter was Rs 28.51 crore, reflecting a growth of 23.37% compared to the previous quarter. The operating profit margin, excluding other income, was reported at 9.52%, showing a slight decline. Overall, while Carraro India demonstrated strong sales and profit growth, the increase in non-operating income and the adjustment in evaluation warrant careful consideration.