Are Divyashakti latest results good or bad?

Divyashakti has reported its financial results for the quarter ending June 2025, showcasing a profit after tax (PAT) of Rs 2.67 crore, which reflects a year-on-year growth of 126.27% compared to Rs 1.74 crore in the same quarter last year. This significant growth in PAT indicates a strong performance relative to the previous twelve-month period. The operating profit for the quarter reached Rs 1.62 crore, marking the highest level in the last five quarters, with an operating profit margin of 10.94%, also the best in this timeframe.
However, the company faced challenges in other areas. The net sales for the quarter were reported at Rs 14.81 crore, which represents a decline of 7.3% compared to the average of the previous four quarters. Additionally, cash and cash equivalents have decreased to Rs 1.66 crore, the lowest level in the last six half-yearly periods, suggesting a decline in short-term liquidity. Furthermore, the debtors turnover ratio has decreased to 0.55 times, indicating a slowdown in the pace of settling debts.

Overall, while Divyashakti's PAT and operating profit figures reflect a positive trend, the decline in net sales and liquidity concerns highlight some operational challenges. The company saw an adjustment in its evaluation based on these financial results.