Are Garden Reach Sh. latest results good or bad?

Garden Reach Shipbuilders & Engineers has reported notable financial results for the quarter ending March 2025. The company achieved a Profit Before Tax (PBT) of Rs 209.61 crore, which represents a significant increase compared to the average PBT of the previous four quarters. Profit After Tax (PAT) also reflected substantial growth, reaching Rs 244.25 crore, again marking a considerable rise from prior averages.
Net sales for the quarter amounted to Rs 1,642.04 crore, indicating a robust increase over the previous four-quarter average and achieving the highest sales figure in the last five quarters. The operating profit reached Rs 220.99 crore, with an operating profit margin of 13.46%, both of which are the highest recorded in the last five quarters.

However, it is important to note that a considerable portion of the PBT, specifically 35.22%, was derived from non-operating income, suggesting a potential reliance on income sources outside of core business operations, which may raise questions about sustainability in the long term.

In light of these results, the company saw an adjustment in its evaluation. The quarterly performance displayed significant growth across key financial metrics, reflecting a strong operational trend for the period.