Are Chemfab Alka. latest results good or bad?

Chemfab Alkalis has reported its financial results for the quarter ending March 2025, revealing a mix of operational trends. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 92.32 crore, which reflects a positive near-term sales trend with a quarter-on-quarter growth of 10.40%. Additionally, the operating profit (PBDIT) reached Rs 13.33 crore, also the highest in the past five quarters, indicating some operational resilience.
However, the results also highlight significant challenges. The profit after tax (PAT) fell sharply to Rs 0.70 crore, representing a decline of 63.4% compared to the average PAT of Rs 1.92 crore over the previous four quarters. This decline is further compounded by a notable increase in quarterly interest costs, which rose by 30.83% to Rs 1.57 crore, marking the highest level in five quarters. Furthermore, non-operating income accounted for 54.33% of profit before tax, raising concerns about the sustainability of the business model. The earnings per share (EPS) also recorded a low of Rs -6.40, indicating declining profitability for shareholders.

In light of these results, the company saw an adjustment in its evaluation. Overall, while Chemfab Alkalis demonstrated some positive sales and operating profit trends, the significant drop in PAT and rising interest costs present notable challenges for its financial health.