Are DE Nora India latest results good or bad?
DE Nora India's latest results show significant growth in net sales and profit before tax, but a decline in profit after tax and concerns over reliance on non-operating income indicate mixed performance. Overall, while there are positive trends, challenges remain regarding sustainability.
DE Nora India has reported its financial results for the quarter ending June 2025, showcasing a significant growth in net sales, which reached Rs 41.97 crore, reflecting a notable increase compared to the average net sales of Rs 17.15 crore over the previous four quarters. This quarter also displayed a substantial improvement in profit before tax (PBT), which amounted to Rs 1.98 crore, indicating a remarkable change from an average PBT of Rs -0.78 crore in the prior four quarters.However, the results also reveal some challenges. The profit after tax (PAT) for the latest six months was reported at Rs 6.59 crore, which represents a year-on-year decline of 22.83%. Additionally, it is important to note that a significant portion of the PBT, approximately 54.38%, was derived from non-operating income, which raises questions about the sustainability of the company's income sources.
In terms of quarterly performance, the net sales for the quarter ending June 2025 exhibited a growth of 108.49% compared to the previous quarter, while the standalone net profit showed a slight decline of 2.69%. The operating profit margin, excluding other income, also experienced a decrease of 13.19%.
Overall, DE Nora India has seen an adjustment in its evaluation, reflecting the mixed operational trends evident in the financial results.
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