Are NCC latest results good or bad?

NCC has reported its financial results for the quarter ending March 2025, highlighting several operational trends. The company's operating profit before depreciation, interest, and taxes (PBDIT) reached Rs 556.31 crore, marking the highest figure in the last five quarters, with an operating profit margin of 9.07%, indicating enhanced efficiency in operations. Additionally, Profit After Tax (PAT) was reported at Rs 253.82 crore, reflecting a notable growth compared to the average PAT of the previous four quarters, resulting in an earnings per share (EPS) of Rs 4.04, which is also the highest in the last five quarters.
However, NCC faced challenges as well, with interest expenses rising to Rs 192.56 crore, indicating higher borrowing costs. The reliance on non-operating income, which reached Rs 58.48 crore, may not be sustainable in the long term.

In the subsequent quarter ending June 2025, the company experienced a decline in net sales by 15.53% compared to the previous quarter. Consolidated net profit also saw a reduction of 24.30%. Operating profit (PBDIT) declined by 18.01%, while interest expenses increased by 15.03%. Despite these challenges, the operating profit margin remained relatively stable at 9.07%.

Overall, NCC's recent results reflect a mix of operational efficiency and profitability growth, alongside rising costs and declining sales in the following quarter. The company saw an adjustment in its evaluation based on these results.