Are GMDC latest results good or bad?

Gujarat Mineral Development Corporation (GMDC) has reported its financial results for the quarter ending March 2025, showcasing a positive performance in several areas. The company achieved a Profit Before Tax (PBT) of Rs 167.03 crore, which represents a growth compared to the average PBT of the previous four quarters. The Profit After Tax (PAT) reached Rs 226.22 crore, indicating a notable increase over the prior four-quarter average and marking the highest PAT recorded in the last five quarters. Additionally, Earnings per Share (EPS) rose to Rs 7.11, also the highest in the last five quarters, reflecting improved profitability for shareholders. GMDC's Debtors Turnover Ratio of 33.54 times is noteworthy, being the highest in the last ten half-yearly periods, which highlights the company's efficiency in managing its receivables.
However, the subsequent quarterly results for June 2025 show a different trend. There was a decline in Net Sales compared to the previous quarter, with a reported decrease of 6.83%. The Consolidated Net Profit also experienced a decline of 27.61% from the previous quarter. Furthermore, the Operating Profit (excluding other income) saw a reduction of 12.56%, and the Operating Profit Margin (excluding other income) decreased slightly as well.

It is important to note that a significant portion of GMDC's PBT, specifically 41.41%, was derived from non-operating income, which raises questions about the sustainability of this income source. Given these mixed results, GMDC has experienced an adjustment in its evaluation.