Are Garnet Intl. latest results good or bad?

Garnet International has reported its financial results for the quarter ending March 2025, revealing a complex picture of its operational performance. The company achieved its highest operating profit (PBDIT) in the last five quarters, recording Rs 0.19 crore, which indicates some operational strength despite the overall financial challenges. Additionally, the profit after tax (PAT) for the nine-month period reached Rs 0.75 crore, surpassing the Rs 0.46 crore reported in the previous twelve months, suggesting that the company has exceeded its sales figures from the prior year.
However, Garnet International is facing significant hurdles, as net sales for the nine-month period stood at Rs 6.09 crore, reflecting a substantial year-on-year decline of 86.33%. This decline is mirrored in the PAT, which also experienced a similar year-on-year decrease of 86.33%. Furthermore, the quarterly results show a net sales decline of 38.11% compared to the previous quarter, contrasting sharply with a growth of 95.89% in the prior quarter.

On the other hand, the consolidated net profit for the quarter showed a notable increase of 300.00% compared to the previous quarter, indicating some recovery in profitability, albeit from a low base. The operating profit margin (excluding other income) also demonstrated a positive change, reflecting an increase from the previous quarter.

Overall, while Garnet International has shown some operational achievements, the significant decline in net sales and profit trends raises concerns about its near-term performance. Additionally, the company saw an adjustment in its evaluation, reflecting the mixed results of its financial performance.