Are HEG latest results good or bad?

HEG has reported its financial results for the quarter ending June 2025, showcasing notable growth in several key metrics. The company achieved a Profit Before Tax (PBT) of Rs 60.54 crore, a significant turnaround from the previous four-quarter average of Rs -15.66 crore. Similarly, the Profit After Tax (PAT) reached Rs 104.83 crore, which represents a substantial increase compared to the previous average of Rs 28.76 crore.
In terms of sales performance, HEG recorded its highest net sales in the last five quarters at Rs 616.93 crore, reflecting a quarterly growth of 13.77%. The operating profit also reached Rs 105.43 crore, marking the highest level in the same period, with an operating profit margin of 17.09%, indicating enhanced operational efficiency.

However, the company faces certain challenges, particularly with a significant portion of its PBT, approximately 52.50%, coming from non-operating income, which raises questions about the sustainability of this performance. Additionally, there has been a decrease in cash and cash equivalents to Rs 146.98 crore, suggesting a decline in short-term liquidity.

Overall, HEG has experienced a revision in its evaluation, reflecting the recent financial performance trends.