Are Dhani Services latest results good or bad?

Dhani Services has reported its financial results for the quarter ending March 2025, revealing a mixed performance that highlights both positive and challenging aspects of its operations.
The company achieved a Profit After Tax (PAT) of Rs 7.18 crore, indicating a notable growth compared to the average PAT of Rs -36.88 crore over the previous four quarters. This suggests an improvement in profitability for the quarter. However, the net sales for the same period were Rs 89.85 crore, which reflects a decline from the average net sales of Rs 105.62 crore in the preceding four quarters, marking the lowest sales figure recorded in the last five quarters. This decline points to challenges in sales performance.

Additionally, the company's reliance on non-operating income, which constituted 357.62% of its Profit Before Tax (PBT), raises concerns regarding the sustainability of its business model. The highest figure for non-operating income recorded in the last five quarters was Rs 45.74 crore, indicating a significant dependency on this source for profitability.

In terms of quarterly comparisons, the net sales showed a QoQ decline of 5.33% from the previous quarter, while the consolidated net profit exhibited a QoQ growth of 54.08%. The operating profit margin, excluding other income, remained negative, indicating ongoing operational challenges.

Overall, Dhani Services has seen an adjustment in its evaluation, reflecting the complexities of its financial performance during this period.