Are Chemfab Alka. latest results good or bad?

Chemfab Alkalis has reported its financial results for the quarter ending March 2025, which reveal a mixed operational performance. The company achieved net sales of Rs 92.32 crore, marking the highest quarterly sales in the last five quarters, indicating a positive trend in sales. Additionally, the operating profit (PBDIT) reached Rs 13.33 crore, also the highest in the same period, suggesting some operational resilience.
However, the report raises significant concerns regarding profitability. The profit after tax (PAT) fell sharply to Rs 0.70 crore, a notable decline compared to the average PAT of Rs 1.92 crore over the previous four quarters. This decline is further compounded by a substantial increase in interest costs, which rose by 30.83% to Rs 1.57 crore, the highest in five quarters, indicating rising borrowings that could impact financial stability. Furthermore, non-operating income accounted for 54.33% of profit before tax, which raises questions about the sustainability of the company's business model. The earnings per share (EPS) also reflected a low of Rs -6.40, indicating challenges in profitability for shareholders.

In light of these results, the company saw an adjustment in its evaluation, reflecting the complexities of its financial performance amidst the operational trends observed.