Are Nahar Poly latest results good or bad?

Nahar Polyfilms has reported its financial results for the quarter ending March 2025, showcasing a complex performance landscape. The Profit Before Tax (PBT) less Other Income reached Rs 13.01 crore, reflecting a substantial growth compared to the average of the previous four quarters. Additionally, the Profit After Tax (PAT) for the quarter was Rs 14.14 crore, indicating a notable increase over the previous four-quarter average. The operating profit margin also saw an improvement, reaching 14.99%, which is the highest recorded in the last five quarters.
However, the company faced challenges with net sales, which declined by 5.4% compared to the previous four-quarter average. This decline in sales is noteworthy as it contrasts with the strong profitability metrics observed. Furthermore, a significant portion of the PBT, approximately 34.06%, was derived from non-operating income, which raises questions regarding the sustainability of this income source.

In terms of quarterly comparisons, Nahar Polyfilms experienced a decline in net sales of 9.43% from the previous quarter, while the consolidated net profit showed a substantial growth of 88.28%. The operating profit margin also demonstrated an upward trend, suggesting operational efficiency despite the sales challenges.

Overall, while Nahar Polyfilms exhibits strong profitability indicators, the decline in net sales presents a concern that the company will need to address moving forward. Additionally, there has been an adjustment in its evaluation, reflecting the mixed performance in its financial results.