Are Mahindra EPC latest results good or bad?

Mahindra EPC Irrigation has reported its financial results for the quarter ending March 2025, showcasing notable operational trends. The Profit After Tax (PAT) for the latest six-month period is Rs 12.60 crore, reflecting a significant year-on-year growth of 298.73%, particularly as it surpasses the PAT of Rs -2.23 crore from the previous twelve months. This substantial improvement in profitability is a key highlight of the company's performance.
In terms of sales, Mahindra EPC recorded quarterly net sales of Rs 95.89 crore, which is a considerable increase of 54.7% compared to the average net sales of Rs 61.99 crore over the preceding four quarters. This figure represents the highest net sales achieved by the company in the last five quarters, indicating a strong near-term sales trend.

However, when examining the quarter-on-quarter performance, there are some shifts worth noting. The net sales growth for the quarter ended March 2025 is reported at 17.73%, which is lower than the previous quarter's growth of 62.83%. Similarly, the consolidated net profit shows a slight decline of 1.57% compared to the previous quarter's growth of 330.07%. Additionally, the operating profit margin (excluding other income) has also seen a decrease, moving from 11.86% to 10.00%.

It is also important to mention that the company experienced an adjustment in its evaluation over the past three months. Overall, while Mahindra EPC has demonstrated strong year-on-year growth in profitability and sales, the quarter-on-quarter metrics indicate some operational challenges that may warrant further observation.