Are Centum Electron latest results good or bad?

Centum Electronics has reported its financial results for the quarter ending June 2025, showcasing several notable trends. The company achieved a Profit Before Tax (PBT) of Rs 5.50 crore, reflecting a year-on-year growth of 227.61%, while the Profit After Tax (PAT) reached Rs 3.70 crore, indicating a 196.5% increase compared to the previous year. This significant growth in profitability is complemented by a reported 11.36% increase in net sales, contrasting with a slight decline in the same quarter last year.
On the liquidity front, Centum Electronics has recorded its highest cash and cash equivalents at Rs 129 crore over the last three half-year periods, suggesting an enhancement in short-term liquidity. Additionally, the company's debt-equity ratio has improved to 0.46 times, the lowest in five half-year periods, which indicates a reduction in borrowing relative to equity capital.

However, the company faces challenges as well. Operating cash flow has reached its lowest level in three years at Rs -29.35 crore, which points to declining cash revenues from business operations. Furthermore, a significant portion of the PBT, approximately 34.91%, is derived from non-operating income, raising questions about the sustainability of its core business model.

Overall, Centum Electronics has seen an adjustment in its evaluation, reflecting the mixed operational trends highlighted in its latest financial results.