Are Kirloskar Oil latest results good or bad?

Kirloskar Oil Engines has reported its financial results for the quarter ending March 2025, showcasing a notable sales performance with net sales reaching Rs 1,752.89 crore, the highest in the last five quarters. This reflects a positive trend in sales compared to the previous quarter. Additionally, the consolidated net profit for the quarter showed a significant growth of 83.79% compared to the prior quarter, indicating a recovery in profitability.
However, when examining the results over a six-month period, the Profit After Tax (PAT) stands at Rs 187.59 crore, which is a decline of 24.82% year-on-year, suggesting challenges in sustaining profitability in the longer term. Furthermore, the company experienced an increase in interest expenses, amounting to Rs 264.06 crore, which is a growth of 20.62% over the previous half-year, indicating a rise in borrowings.

On a more positive note, Kirloskar Oil reported non-operating income of Rs 15.01 crore for the quarter, the highest in the last five quarters, although such income may not be sustainable in the long run. Overall, the company saw an adjustment in its evaluation, reflecting changes in its financial standing over recent months.