Are Centrum Capital latest results good or bad?

Centrum Capital has reported its financial results for the quarter ending March 2025, showcasing notable growth in several key metrics. The company's net sales reached Rs 1,116.25 crore, reflecting a 27.21% increase compared to the previous quarter. This marks a continuation of a growth trend, with net sales increasing consistently over the last five quarters. Additionally, Centrum Capital achieved its highest operating profit (PBDIT) in the last five quarters, amounting to Rs 442.96 crore, which indicates a positive trend in operational efficiency.
On the profitability front, the consolidated net profit showed a significant turnaround, with a growth of 60.79% from the previous quarter, moving from a negative position to a positive outcome. The operating profit margin, excluding other income, also demonstrated a positive trend, reaching 54.42%.

However, it is important to note that the company has a high reliance on non-operating income, which constitutes a substantial portion of its profit before tax. This reliance raises questions about the sustainability of its business model moving forward.

In light of these results, Centrum Capital experienced an adjustment in its evaluation, reflecting the mixed sentiments surrounding its financial health and operational trends. Overall, the financial data indicates a company that is experiencing growth in sales and profitability, while also facing challenges related to its income sources.