Are Meghmani Organi. latest results good or bad?

Meghmani Organics has reported its financial results for the quarter ending March 2025, indicating a significant turnaround in profitability. The Profit Before Tax (PBT) reached Rs 16.67 crore, reflecting a notable change compared to the average PBT of the previous four quarters, which was negative. Similarly, the Profit After Tax (PAT) surged to Rs 19.82 crore, showcasing a substantial increase over the prior average, which was also negative.
Net sales for the latest six months amounted to Rs 1,121.97 crore, demonstrating a year-on-year growth of 47.28%. The operating profit margin improved to 11.83%, the highest recorded in the last five quarters. However, the company faced challenges with rising interest costs, which increased by 50% quarter-on-quarter to Rs 19.32 crore, indicating higher borrowings. Additionally, non-operating income accounted for a significant portion of PBT, raising questions about sustainability.

In the quarterly results snapshot, net sales showed a slight decline of 2.65% compared to the previous quarter, while consolidated net profit exhibited a remarkable growth of 551.48%. The operating profit margin, excluding other income, also improved. Overall, Meghmani Organics has demonstrated positive trends in key financial metrics, despite the challenges related to interest expenses and the reliance on non-operating income. The company saw an adjustment in its evaluation based on these results.