Are Narmada Gelatines Ltd latest results good or bad?

Narmada Gelatines Ltd's latest financial results for the December quarter highlight a notable operational turnaround. The company reported a year-on-year revenue growth of 18.14%, reaching ₹56.73 crores, while also achieving a sequential revenue increase of 10.78% compared to the previous quarter. This consistent upward trend in revenue suggests a strong demand for the company's products. The operating margin, excluding other income, expanded to 18.81%, marking a significant improvement of 511 basis points from the same quarter last year and a sequential increase of 55 basis points. This margin expansion reflects effective cost management and operational efficiencies that have been implemented. Narmada Gelatines also reported a consolidated net profit of ₹8.40 crores, which represents a substantial 90.05% increase year-on-year and a 21.92% rise from the previous quarter. The profit after tax (PAT) margin improved to 14.81%, up 561 basis points year-on-year, indicating enhanced profitability. The financial performance showcases the company's ability to scale operations effectively, as evidenced by the increase in operating profit before depreciation, interest, and tax (PBDIT) to ₹10.67 crores. The quality of earnings has improved, with a reduction in interest costs and strategic investments in talent to support future growth. Overall, Narmada Gelatines Ltd's results indicate a strong operational performance, with all key profitability metrics reaching multi-quarter highs. The company has seen an adjustment in its evaluation, reflecting the positive trajectory of its financial metrics. Investors may find the company's improving operational efficiency and financial health noteworthy as they assess its future potential.