Are Chemplast Sanmar latest results good or bad?

Chemplast Sanmar has reported its financial results for the quarter ending June 2025, which highlight several challenges faced by the company. The Profit Before Tax (PBT) stands at Rs -95.41 crore, reflecting a substantial decline compared to the previous four quarters' average PBT of Rs -54.03 crore. Similarly, the Profit After Tax (PAT) is reported at Rs -64.25 crore, which is a significant drop from the average PAT of Rs -27.59 crore during the same period.
The operating performance has also shown a downward trend, with an operating profit (PBDIT) of Rs 17.07 crore, marking the lowest level in the last five quarters. The operating profit margin has decreased to 1.55%, indicating challenges in maintaining operational efficiency. Additionally, the company's ability to manage interest payments is concerning, as the operating profit to interest ratio has fallen to 0.29 times, the lowest in five quarters. The earnings per share (EPS) have also declined to Rs -4.06, further illustrating the difficult financial landscape for Chemplast Sanmar.

In terms of quarterly performance, the company experienced a net sales decline of 4.43% compared to the previous quarter, which contrasts with a growth of 8.83% in the prior quarter. The consolidated net profit also saw a decline of 18.61% from the previous quarter, which was already negative. The operating profit margin has decreased by 1.64%, indicating further pressure on profitability.

Overall, these results suggest that Chemplast Sanmar is navigating a challenging operational environment. The company has seen an adjustment in its evaluation, reflecting the current financial difficulties.