Are Harri. Malayalam latest results good or bad?

Harrisons Malayalam has reported its financial results for the quarter ending June 2025, revealing a complex picture of its operational performance. The company achieved a Profit After Tax (PAT) of Rs 11.15 crore, which reflects a substantial year-on-year growth of 246.90%. Additionally, the Profit Before Tax (PBT) for the quarter stood at Rs 3.17 crore, indicating a significant increase of 313.0% compared to the average PBT from the previous four quarters.
However, the company's net sales for the quarter totaled Rs 116.46 crore, which represents a decline of 9.4% from the average of the previous four quarters. This decrease in sales is noteworthy, especially as it contrasts with the strong growth in profitability. Furthermore, a considerable portion of the company's income, specifically 46.81% of PBT, is derived from non-operating activities, which raises questions about the sustainability of its business model moving forward.

In terms of quarterly performance, the company experienced a net sales decline of 14.81% compared to the previous quarter, while the consolidated net profit showed a growth of 14.84%. The operating profit margin, excluding other income, was reported at 7.05%, with a change of 2.24% from the previous quarter.

Overall, while Harrisons Malayalam has demonstrated notable growth in profitability, the challenges related to sales performance and reliance on non-operating income are critical factors that warrant close attention. Additionally, the company saw an adjustment in its evaluation based on these results.