Are NELCO latest results good or bad?

NELCO has reported its financial results for the quarter ending June 2025, revealing several key trends. The company experienced a significant decline in Profit Before Tax (PBT), which stood at Rs 1.83 crore, down 49.4% from the average PBT of Rs 3.62 crore over the previous four quarters. Profit After Tax (PAT) also fell to Rs 1.80 crore, reflecting a decrease of 24.4% compared to the average PAT of Rs 2.38 crore in the same timeframe.
Operating cash flow has reached its lowest point at Rs 19.66 crore, indicating a continued downward trend over the past three years. Additionally, the Debtors Turnover Ratio has declined to 2.86 times, the lowest in the last five half-year periods, suggesting challenges in managing receivables and operational efficiency.

On a quarterly basis, NELCO reported a Net Sales growth of 10.77% compared to the previous quarter, which had a decline of 16.35%. The Consolidated Net Profit showed a notable growth of 144.12% from the previous quarter's performance, which had a significant drop of 182.42%. However, the Operating Profit Margin (excluding other income) slightly decreased to 9.82%, down from 10.35% in the previous quarter.

Overall, while there are some positive trends in quarterly sales and net profit growth, the underlying metrics indicate ongoing operational challenges for NELCO. The company saw an adjustment in its evaluation based on these results.