Are Mohit Paper Mill latest results good or bad?

Mohit Paper Mills has reported its financial results for the quarter ending March 2025, showcasing a mixed operational performance. The company's net sales reached Rs 52.41 crore, which is the highest quarterly figure in the last five quarters and reflects a growth of 20.9% compared to the average net sales of Rs 43.34 crore from the previous four quarters. This indicates a positive trend in revenue generation.
In terms of operating performance, the operating profit (PBDIT) also peaked at Rs 5.46 crore, suggesting a favorable trend in operational efficiency. However, the company encountered significant challenges regarding profitability, as the profit after tax (PAT) declined to Rs 0.22 crore, marking an 87.3% drop compared to the average PAT of Rs 1.74 crore from the previous four quarters. This decline points to a notable negative trend in profitability.

Additionally, interest expenses rose to Rs 3.85 crore, reflecting a 27.48% increase from the previous half-year period, which indicates higher borrowing costs. The earnings per share (EPS) fell to Rs 0.16, the lowest level in five quarters, suggesting reduced earnings for shareholders.

Overall, while Mohit Paper Mills experienced growth in sales and operating profit, the substantial decline in profitability and increased interest expenses present challenges. The company saw an adjustment in its evaluation, indicating a shift in its overall financial assessment.