Are Chalet Hotels latest results good or bad?

Chalet Hotels has reported notable financial results for the quarter ending March 2025, showcasing substantial growth across several key metrics. The Profit After Tax (PAT) reached Rs 123.85 crore, reflecting a significant increase compared to the average PAT from the previous four quarters. The Profit Before Tax (PBT) also demonstrated positive growth, standing at Rs 143.42 crore, indicating a strong operational performance.
Net sales for the quarter amounted to Rs 521.97 crore, which represents a considerable rise over the previous four-quarter average. Additionally, the operating profit margin improved to 46.26%, suggesting enhanced operational efficiency. The Earnings per Share (EPS) rose to Rs 5.67, marking the highest level in the last five quarters.

However, the company is facing challenges, particularly with a notable increase in interest costs, which rose by 42.76% to Rs 93.55 crore over the last six months, indicating higher borrowings. Furthermore, while non-operating income peaked at Rs 15.40 crore, there are concerns regarding its sustainability.

In terms of quarter-over-quarter performance, net sales growth was recorded at 14.02%, a decline from the previous quarter's growth rate. Similarly, the consolidated net profit growth was 28.29%, which is lower than the previous quarter's performance. The company also experienced a slight improvement in the operating profit margin, indicating stable operational efficiency.

Overall, Chalet Hotels has seen an adjustment in its evaluation, reflecting the mixed operational trends and financial performance during this period.