Are Competent Auto latest results good or bad?

Competent Automobiles Company has reported financial results for the quarter ending June 2025 that reflect significant declines across several key performance metrics. The company's net sales reached Rs 444.56 crore, marking a year-on-year decline of 6.11%, which is the lowest level in five quarters. Additionally, the Profit Before Tax less Other Income (PBT) fell sharply to Rs 0.28 crore, indicating a substantial year-on-year decrease of 95.06%. The Profit After Tax (PAT) also saw a notable decline of 53.4%, bringing it down to Rs 2.68 crore.
Operating Profit (PBDIT) was reported at Rs 16.48 crore, the lowest in the last five quarters, which reflects a year-on-year decline of 13.50%. The company's ability to manage interest payments has also come under pressure, with an Operating Profit to Interest ratio of 2.01 times, and interest expenses have risen by 22.02% over the preceding nine months, suggesting increased borrowings. Furthermore, a significant portion of the PBT, approximately 90.57%, was derived from non-operating income, raising concerns about the sustainability of the company's core business operations.

In light of these results, Competent Automobiles has experienced an adjustment in its evaluation, reflecting the challenges faced in maintaining profitability and operational efficiency.