Are Chemplast Sanmar latest results good or bad?

Chemplast Sanmar has reported its financial results for the quarter ending March 2025, revealing a complex picture of its performance. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 1,150.88 crore, which indicates a positive near-term sales trend. However, the profitability metrics present significant challenges. The Profit Before Tax less Other Income (PBT) was reported at Rs -86.78 crore, reflecting a notable decline compared to the average of the previous four quarters. Similarly, the Profit After Tax (PAT) stood at Rs -54.17 crore, which marks a considerable fall from the previous four-quarter average.
Additionally, the Earnings per Share (EPS) reached its lowest level in five quarters at Rs -3.43, indicating declining profitability for shareholders. On a slightly positive note, non-operating income rose to Rs 13.89 crore, the highest in five quarters, although its sustainability is uncertain.

In terms of quarterly performance, the net sales showed an 8.83% growth compared to the previous quarter, while the consolidated net profit reflected a reduction of 10.96% compared to the prior period. The operating profit margin, excluding other income, was reported at 3.19%, with a minimal change from the previous quarter.

Overall, while Chemplast Sanmar experienced a positive trend in sales, the underlying profitability challenges remain a key concern. The company saw an adjustment in its evaluation over the past three months.