Are H.G. Infra Engg. latest results good or bad?

H.G. Infra Engineering has reported its financial results for the quarter ending March 2025, revealing significant challenges in its performance compared to the previous year. The company's net sales amounted to Rs 1,360.89 crore, which represents a year-on-year decline of 20.33%. This decline raises concerns about the company's near-term outlook and operational efficiency.
Profit Before Tax (PBT), excluding other income, was reported at Rs 131.36 crore, reflecting a sharp year-on-year decrease of 46.67%. Similarly, Profit After Tax (PAT) fell to Rs 130.95 crore, marking a 31.1% decline compared to the previous year. The operating profit margin has also reached its lowest point in five quarters at 17.59%, indicating a deterioration in operational efficiency.

Additionally, the company's ability to manage interest payments has weakened, as evidenced by a drop in the Operating Profit to Interest ratio to 3.39 times. Interest expenses have increased by 22.14% over the last six months, highlighting rising borrowing costs.

Overall, H.G. Infra Engineering's financial results reflect significant operational challenges in the current market environment. The company has seen an adjustment in its evaluation based on these results.