Are Cartrade Tech latest results good or bad?

Cartrade Tech has reported its financial results for the quarter ending March 2025, showcasing a mix of positive and challenging trends. The company achieved a Profit After Tax (PAT) of Rs 84.51 crore over the latest six months, reflecting a year-on-year growth of 145.61%. Additionally, the Profit Before Tax (PBT) for the quarter was Rs 33.38 crore, indicating a 72.9% increase compared to the average PBT of the previous four quarters. Net sales reached Rs 345.73 crore, which is a 21.79% increase year-on-year.
However, the company is facing some challenges. Interest expenses rose to Rs 8.99 crore, a 21.49% increase over the preceding nine months, suggesting higher borrowings. Furthermore, non-operating income constituted 37.41% of PBT, with the highest quarterly figure of Rs 19.95 crore in the last five quarters, which raises questions about the sustainability of this income source.

In terms of quarterly performance, Cartrade Tech experienced a decline in net sales, with a QoQ change of -3.81% compared to a previous growth of 14.27% in December 2024. The consolidated net profit also saw a QoQ change of -2.04%, down from a growth of 53.12% in the prior quarter. The operating profit margin, excluding other income, decreased slightly by -1.19%.

It is noteworthy that the company saw an adjustment in its evaluation over the past three months. Overall, while Cartrade Tech's long-term growth indicators appear strong, the recent quarterly results highlight some operational challenges that may need to be addressed moving forward.