Are Garment Mantra latest results good or bad?

Garment Mantra Lifestyle has reported its financial results for the quarter ending June 2025, revealing a mixed operational performance. The company has experienced a notable growth in Profit After Tax (PAT), which reached Rs 2.33 crore, reflecting a year-on-year increase of 118.63%. This improvement in profitability is a positive trend for the company, as it surpasses the previous year's PAT of Rs 1.92 crore. Additionally, the Earnings per Share (EPS) has reached Rs 0.08, marking the highest level in the last five quarters, indicating enhanced earnings for shareholders.
However, the company is also facing challenges. The net sales for the quarter amounted to Rs 37.16 crore, which represents a decline of 8.68% compared to the previous year. This decline is significant when contrasted with the previous year's growth of 48.83%. Furthermore, the operating profit margin has decreased to 3.93%, and the inventory turnover ratio has dropped to its lowest point at 2.05 times, suggesting a slowdown in inventory movement. Additionally, cash and cash equivalents have fallen to Rs 0.15 crore, indicating a decline in short-term liquidity.

It is worth noting that Garment Mantra has seen an adjustment in its evaluation over the past three months. Overall, while the company has demonstrated strong profitability growth, the challenges in sales and liquidity highlight areas that may require attention moving forward.