Are MIC Electronics latest results good or bad?

MIC Electronics has reported its financial results for the quarter ending June 2025, highlighting a complex operational landscape. The company achieved net sales of Rs 56.46 crore, which reflects a year-on-year growth of 67.69%. This growth indicates a favorable trend in sales performance compared to the previous year.
However, several concerning factors have emerged from the latest financials. The operating profit to interest ratio has reached its lowest level in five quarters at 2.46 times, suggesting challenges in managing interest obligations. Additionally, Profit After Tax (PAT) has declined by 15.2% year-on-year to Rs 1.67 crore, and interest expenses have risen to Rs 1.67 crore, which is a significant quarter-on-quarter increase of 17.61%. This rise in interest expenses points to an increase in borrowings, which may impact future financial stability.

Profit Before Tax (PBT) has also decreased to Rs 1.53 crore, marking the lowest figure in five quarters, while earnings per share (EPS) have fallen to Rs 0.07, indicating a decline in profitability for shareholders.

Overall, while MIC Electronics has shown strong sales growth, the decline in profitability metrics and rising interest expenses suggest that the company is facing operational challenges. Furthermore, the company saw an adjustment in its evaluation over the past three months.