Are H P Cotton Tex latest results good or bad?

H P Cotton Textile Mills has reported its financial results for the quarter ending March 2025, revealing a notable performance with net sales reaching Rs 36.43 crore, the highest in the last five quarters. This figure indicates a growth compared to the average net sales of Rs 27.70 crore from the previous four quarters, suggesting a positive near-term sales trend. The profit after tax (PAT) for the quarter was Rs 0.98 crore, also the highest in the last five quarters, reflecting a favorable trend in profitability. Earnings per share (EPS) was reported at Rs 2.50, indicating increased earnings for shareholders.
However, the company faced challenges, particularly with interest expenses rising to Rs 1.95 crore, which represents a significant quarter-over-quarter increase. This rise in interest costs may suggest increased borrowings, potentially impacting future financial stability.

In the subsequent quarter ending June 2025, the company reported a slight decline in net sales by 1.43% compared to the previous quarter. The standalone net profit also saw a decline of 14.14%, contrasting sharply with the substantial growth observed in the March quarter. Operating profit margin showed a minor change, reflecting a slight decrease.

Overall, H P Cotton Textile Mills has experienced fluctuations in its financial performance, with a recent adjustment in its evaluation noted. The results highlight both positive trends in sales and profitability, as well as emerging challenges related to rising interest expenses and subsequent declines in key financial metrics.