Are Facor Alloys latest results good or bad?

Facor Alloys has reported its financial results for the quarter ending December 2024, indicating a notable turnaround in its Profit After Tax (PAT), which stood at Rs 5.36 crore. This reflects a significant change compared to the average PAT of Rs -1.12 crore over the previous four quarters, suggesting an improvement in the company's near-term financial health.
However, the results also reveal some concerning trends. The Earnings per Share (EPS) has reached Rs -1.59, marking the lowest level in five quarters, which indicates challenges in profitability for shareholders. Additionally, the company's cash and cash equivalents have decreased to Rs 0.09 crore, the lowest in the last six half-yearly periods, highlighting potential issues with short-term liquidity. The Debtors Turnover Ratio has also declined to 0.15 times, the lowest in five half-yearly periods, suggesting a slowdown in the company's ability to manage its receivables.

In terms of quarterly performance, the net sales remained unchanged at Rs 0.17 crore, while the consolidated net profit showed a significant change, moving to Rs 0.71 crore from a previous decline. The operating profit margin, however, remained negative, indicating ongoing challenges in operational efficiency. Overall, Facor Alloys has seen an adjustment in its evaluation, reflecting the mixed nature of its financial performance.