Are GTL Infra. latest results good or bad?

GTL Infrastructure has reported its financial results for the quarter ending March 2025, which highlight several operational trends. The company's net sales experienced a slight decline of 0.43% compared to the previous quarter, reflecting a challenging sales environment. Additionally, the standalone net profit showed a significant drop of 18.43% from the prior quarter, indicating ongoing difficulties in profitability.
On the operational side, the operating profit, excluding other income, saw a notable decrease of 49.56%, suggesting challenges in managing operational costs effectively. The operating profit margin also declined by 13.22%, further emphasizing the pressures on the company's profitability.

Despite these challenges, GTL Infrastructure achieved its highest cash and cash equivalents in the last three years, totaling Rs 829.98 crore, which points to an enhancement in short-term liquidity. The debtor turnover ratio reached a peak of 16.41 times, indicating improved efficiency in collecting receivables.

However, the company is facing significant hurdles, including a Profit After Tax (PAT) of Rs -248.89 crore, which represents a decline compared to the average of the previous four quarters. The operating profit to interest ratio has also fallen to a low of 0.19 times, reflecting difficulties in managing interest obligations. Furthermore, the debt-equity ratio has risen to -0.62 times, suggesting an increase in borrowing to support operations, while earnings per share have decreased to Rs -0.19, indicating a trend of declining profitability for shareholders.

Overall, GTL Infrastructure's latest results reveal a mix of operational challenges and some liquidity improvements, alongside an adjustment in its evaluation.