Are Minda Corp latest results good or bad?

Minda Corporation's financial results for the quarter ending March 2025 present a mixed picture. The company reported net sales of Rs 1,321.26 crore, which is the highest figure in the last five quarters, reflecting a quarter-on-quarter growth of 5.48%. Additionally, the operating profit (PBDIT) reached Rs 152.88 crore, also the highest in this timeframe, with an operating profit margin of 11.57%, indicating enhanced operational efficiency.
However, the results also reveal significant challenges. Profit Before Tax (PBT) declined to Rs 61.57 crore, marking a 24% decrease compared to the average of the previous four quarters. Profit After Tax (PAT) similarly fell by 24.1% to Rs 52.03 crore. The company faced a substantial rise in interest costs, with interest expenses surging nearly 190% quarter on quarter to Rs 34.50 crore, which is the highest level in five quarters. This increase has adversely affected the company's ability to manage interest payments, as evidenced by a declining operating profit to interest ratio of 4.43 times. Furthermore, earnings per share (EPS) dropped to Rs 2.18, the lowest in five quarters, indicating a reduction in profitability for shareholders.

In light of these results, Minda Corporation experienced an adjustment in its evaluation, reflecting the complexities in its operational performance amidst rising costs and declining profitability metrics.