Are HP Adhesives latest results good or bad?

Aug 08 2025 07:33 PM IST
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HP Adhesives reported its highest quarterly net sales in five quarters at Rs 66.83 crore, but faced challenges with declining operating profit and profit after tax, indicating mixed results overall. While there was slight growth in net sales and standalone profit, the overall financial performance suggests operational inefficiencies and a negative trend in profitability.
HP Adhesives has reported its financial results for the quarter ending March 2025, highlighting a mix of developments. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 66.83 crore, which reflects a positive near-term sales trend. However, the financial performance also reveals significant challenges. The operating profit (PBDIT) fell to Rs 5.77 crore, marking the lowest level in five quarters, and the operating profit margin decreased to 8.63%, indicating a decline in operational efficiency.

Profit before tax (PBT) also reached Rs 3.92 crore, the lowest in the same period, while profit after tax (PAT) for the latest six months showed a year-on-year decline of 21.81%, suggesting a negative trend. Notably, non-operating income was at its highest in five quarters at Rs 1.53 crore, although this increase may not be sustainable.

In terms of quarterly comparisons, net sales showed a growth of 0.67% compared to the previous quarter, which was a decrease from the 11.69% growth observed in December 2024. Standalone net profit exhibited a growth of 4.04% in the latest quarter, contrasting with a decline in the previous quarter. Overall, the company saw an adjustment in its evaluation during this period, reflecting the complexities of its financial landscape.
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