Are Indo Rama Synth. latest results good or bad?

Indo Rama Synthetics (India) has reported its financial results for the quarter ending March 2025, showcasing a notable turnaround in profitability metrics. The company recorded a Profit Before Tax (PBT) of Rs 28.31 crore, reflecting a significant change compared to the previous four-quarter average of Rs -24.46 crore. Profit After Tax (PAT) also saw a substantial increase, reaching Rs 51.07 crore, a notable shift from an average of Rs -22.54 crore in prior quarters.
Net sales reached a record high of Rs 1,198.47 crore, with a growth of 20.9% over the previous four-quarter average of Rs 991.15 crore. The operating profit margin improved to 6.86%, indicating enhanced operational efficiency. However, it is important to note that non-operating income accounted for 44.57% of the PBT, raising questions about the sustainability of this performance, as this income reached Rs 22.76 crore, the highest in the last five quarters.

In terms of quarterly performance, when compared to the previous quarter (Dec 2024), net sales showed a growth of 2.82%, while consolidated net profit exhibited a significant growth of 275.79%. The operating profit margin, excluding other income, was reported at 6.86%, reflecting a positive trend in operational efficiency.

Overall, Indo Rama Synthetics has experienced a noteworthy shift in its financial performance, leading to an adjustment in its evaluation. The results indicate a combination of strong sales growth and profitability improvements, albeit with some reliance on non-operating income.