Are Lodha Developers latest results good or bad?

Macrotech Developers has reported its financial results for the quarter ending March 2025, showcasing a range of operational metrics. The company achieved a Profit After Tax (PAT) of Rs 921.70 crore, reflecting a notable growth compared to the average PAT of Rs 627.03 crore over the previous four quarters. Net sales reached a record high of Rs 4,224.30 crore, indicating a 24.5% increase from the average net sales of Rs 3,393.43 crore in the prior four quarters. The Profit Before Tax (PBT), excluding other income, was reported at Rs 990.50 crore, which is a 32.6% rise from the average PBT of Rs 746.95 crore in the previous four quarters.
However, the results also reveal some challenges. Interest expenses for the nine-month period rose to Rs 432.30 crore, marking a 23.58% increase, which points to higher borrowing costs. Additionally, non-operating income reached Rs 196.00 crore, the highest in five quarters, raising questions about the sustainability of this income source.

In the quarterly snapshot for March 2025, net sales exhibited a growth of 3.46% compared to the previous quarter, which was lower than the 55.50% growth seen in December 2024. The consolidated net profit showed a decline of 2.40% from the prior quarter, contrasting with a significant growth of 123.32% in December 2024. Operating profit (PBDIT), excluding other income, decreased by 6.52%, while interest expenses increased by 5.27%. Furthermore, the operating profit margin, excluding other income, saw a reduction of 3.08%.

Overall, the financial results indicate a mixed performance for Macrotech Developers, with strong year-on-year growth in key metrics but some signs of pressure in the most recent quarter. The company saw an adjustment in its evaluation based on these results.