Are Electronics Mart latest results good or bad?

Electronics Mart India has reported its financial results for the quarter ending June 2025, which highlight several concerning trends. The company's Profit After Tax (PAT) stands at Rs 27.73 crore, reflecting a notable decline of 30.5% compared to the average PAT of Rs 39.92 crore from the previous four quarters. This suggests a challenging outlook for near-term profitability.
The operating profit to interest ratio has dropped to 2.94 times, indicating a reduced ability to manage interest payments effectively over the past five quarters. Additionally, interest expenses have surged to Rs 73.91 crore, marking a significant increase of 40.89% compared to the previous half-year period, which points to rising borrowing costs.

Earnings per Share (EPS) have reached a low of Rs 0.56, further underscoring the decline in profitability. The company's cash and cash equivalents have decreased to Rs 30.53 crore, the lowest in the last six half-year periods, signaling a deterioration in short-term liquidity. Furthermore, the debt-equity ratio has risen to 1.29 times, indicating an increased reliance on borrowing to fund operations.

In terms of quarterly performance, Electronics Mart reported a net sales growth of 4.52% for the quarter ending June 2025, compared to a decline of 11.70% in the previous quarter. However, the consolidated net profit showed a decline of 18.90%, following a decrease of 15.50% in the prior quarter. The operating profit margin, excluding other income, has also seen a slight reduction, moving from 6.33% to 6.46%.

Overall, the financial data reflects a challenging environment for Electronics Mart India, with several key metrics indicating a decline in profitability and increased financial strain. Additionally, the company saw an adjustment in its evaluation based on these results.