Are CHD Chemicals latest results good or bad?

CHD Chemicals has released its financial results for the quarter ending March 2025, highlighting a mixed performance. The company reported a Profit After Tax (PAT) of Rs 0.05 crore for the latest six-month period, which represents a turnaround from a loss of Rs 0.18 crore in the previous twelve months. This indicates a positive shift in profitability, as the company has already surpassed its PAT from the previous year within just half a year.
However, the company's sales performance has raised concerns. For the nine-month period, net sales reached Rs 5.37 crore, reflecting a substantial decline of 58.01% year on year. Additionally, the quarterly results for March 2025 show a net sales decline of 66.51% compared to the same quarter in the previous year, contrasting sharply with a growth of 31.50% in March 2024. The operating profit also saw a decline of 78.57%, which further emphasizes the challenges faced by the company in maintaining its sales momentum.

Moreover, CHD Chemicals experienced an adjustment in its evaluation over the past three months. The operating profit margin, excluding other income, decreased to 2.08%, indicating a contraction in profitability relative to sales. Overall, while the company has made progress in profitability, the significant drop in sales raises questions about its near-term financial outlook.