Are HEG latest results good or bad?

HEG has reported its financial results for the quarter ending March 2025, which reflect significant challenges in its operational performance. The company recorded a Profit Before Tax (PBT) of Rs -132.62 crore, which is a notable decline compared to the average PBT of Rs 13.02 crore from the previous four quarters. This downturn indicates a very negative trend in the company's near-term financial health.
The Profit After Tax (PAT) also saw a sharp decline, falling to Rs -73.67 crore, contrasting with the average PAT of Rs 55.41 crore in prior quarters. Additionally, HEG's interest expenses rose to Rs 12.01 crore, marking an increase of 28.04% quarter on quarter, which suggests higher borrowing costs impacting the company's financial position.

The operating profit (PBDIT) reached its lowest level in five quarters at Rs -55.47 crore, leading to an operating profit margin of -10.23%. Furthermore, the earnings per share (EPS) decreased to Rs -3.82, indicating reduced profitability and lower earnings for shareholders.

Overall, the financial performance of HEG has led to an adjustment in its evaluation. The net sales showed a growth of 13.35% compared to the previous quarter, but this was overshadowed by the substantial declines in profitability metrics.