Are Modison latest results good or bad?

Modison has reported its financial results for the quarter ending June 2025, revealing a mixed operational performance. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 134.14 crore, indicating a favorable near-term sales trend. However, this was accompanied by a decline in Profit After Tax (PAT), which fell by 10.5% to Rs 5.65 crore compared to the average of Rs 6.31 crore over the previous four quarters, suggesting a negative near-term trend.
The operating profit to interest ratio has reached its lowest point at 4.14 times, reflecting challenges in managing interest payments. Additionally, the debt-equity ratio increased to 0.34 times, indicating a rise in borrowing to fund operations, which may impact liquidity. Interest expenses rose by 22.49% quarter-over-quarter, reaching Rs 2.07 crore, further straining financial resources. Notably, non-operating income accounted for 44.16% of Profit Before Tax, raising concerns about the sustainability of Modison's business model.

Overall, while Modison's sales figures show a positive trend, the decline in profitability, rising debt levels, and increased interest expenses highlight significant challenges. The company also saw an adjustment in its evaluation over the past three months.