Are JBM Auto latest results good or bad?

JBM Auto's latest financial results for the quarter ending June 2025 reflect notable challenges across several key performance metrics. The company's Profit Before Tax (PBT) has significantly decreased to Rs 10.40 crore, a stark contrast to the average of Rs 54.90 crore over the previous four quarters, indicating a substantial decline in profitability. Additionally, Profit After Tax (PAT) has also contracted, totaling Rs 36.80 crore compared to an average of Rs 50.48 crore in prior quarters, highlighting a reduction in net earnings.
Net sales for the quarter amounted to Rs 1,253.88 crore, which marks a decline from an average of Rs 1,368.08 crore, reflecting a decrease of 8.3%. The operating profit recorded at Rs 139.50 crore is the lowest in the last five quarters, contributing to a reduced operating profit margin of 11.13%. Furthermore, the company's ability to manage interest payments has shown signs of weakening, as evidenced by a drop in the operating profit to interest ratio to 2.12 times.

There is an increased reliance on non-operating income, which now constitutes a significant portion of PBT, raising concerns about the sustainability of JBM Auto's business model. The debtors turnover ratio has also decreased, suggesting a slower pace in settling debts, which could impact liquidity.

Overall, these results indicate that JBM Auto is facing considerable operational challenges. The company has experienced an adjustment in its evaluation, reflecting the current financial landscape.