Are Neogen Chemicals latest results good or bad?

Neogen Chemicals has reported its financial results for the quarter ending June 2025, which reflect a challenging operational environment. The company experienced a decline in net sales of 7.93% compared to the previous quarter, indicating a contraction in revenue generation. In terms of profitability, the Profit Before Tax (PBT) decreased to Rs 13.11 crore, marking a decline of 12.9% from the average of the previous four quarters, and this is the lowest PBT recorded in the last five quarters. Similarly, the Profit After Tax (PAT) also saw a reduction, standing at Rs 10.26 crore, down 6.9% from the prior four-quarter average.
On a more positive note, Neogen Chemicals achieved its highest Debtors Turnover Ratio in the last five half-yearly periods at 3.88 times, suggesting improved efficiency in settling debts. However, the Operating Profit to Interest ratio has reached its lowest point in the last five quarters at 2.49 times, indicating challenges in managing interest payments.

Overall, the company has faced several operational difficulties, leading to an adjustment in its evaluation. The financial results reflect a mixed performance, with some areas showing improvement while others indicate significant challenges.