Are Keystone Realtor latest results good or bad?

Keystone Realtors has reported its financial results for the quarter ending March 2025, which reveal a mixed operational performance. The company's Profit After Tax (PAT) for the quarter is Rs 64.80 crore, reflecting a notable growth compared to the average PAT of Rs 34.46 crore from the previous four quarters. This trend in PAT suggests a strong near-term outlook for profitability.
However, the company has encountered challenges as its Profit Before Tax (PBT), excluding other income, has decreased by 15.1% to Rs 29.27 crore, down from an average of Rs 34.48 crore in the previous four quarters. This decline indicates a negative trend in operational profitability. Additionally, Keystone Realtors reported net sales of Rs 1,048.87 crore over the last six months, marking a year-on-year decline of 21.27%. The company's reliance on non-operating income, which constitutes 66.21% of its PBT, raises concerns about the sustainability of its business model. The non-operating income reached Rs 57.35 crore, the highest in the last five quarters, indicating potential risks to future earnings stability.

In terms of quarterly performance, Keystone Realtors saw a 26.04% growth in net sales compared to the previous quarter, which contrasts with a decline of 12.95% in the quarter ending December 2024. The consolidated net profit experienced a significant growth of 329.99% in the same period, compared to a decline of 77.26% in the previous quarter. Operating profit, excluding other income, also showed a positive trend with a growth of 22.85% compared to the previous quarter.

Overall, while Keystone Realtors has demonstrated strong PAT growth and improvements in quarterly metrics, the challenges in PBT and reliance on non-operating income suggest caution regarding the sustainability of its operational performance. The company also saw an adjustment in its evaluation during this reporting period.