Are Cyient DLM latest results good or bad?

Cyient DLM has reported its financial results for the quarter ending June 2025, which reflect several challenges for the company. The key takeaway from these results is the significant decline in both net sales and profit after tax (PAT). Specifically, net sales amounted to Rs 278.43 crore, marking a decrease of 26.7% compared to the average of Rs 379.91 crore over the previous four quarters. This decline is further emphasized by a quarterly growth rate of -34.96% compared to the previous quarter.
In terms of profitability, the PAT reported was Rs 7.46 crore, which represents a sharp decline of 56.2% from the average PAT of Rs 17.02 crore in prior quarters. The quarterly growth rate for consolidated net profit also reflects a substantial decline of -75.97% compared to the previous quarter.

On a more positive note, Cyient DLM has maintained a low debt-equity ratio of 0.21 times, the lowest observed in the last five half-yearly periods, suggesting a reduction in reliance on borrowed funds relative to equity. However, the company's dependence on non-operating income, which constitutes a significant portion of profit before tax at 41.39%, raises questions about the sustainability of its business model.

Additionally, earnings per share have fallen to Rs 0.94, indicating declining profitability for shareholders. Overall, the company has experienced an adjustment in its evaluation, reflecting the operational challenges it faces in the current financial landscape.