Are NLC India latest results good or bad?

NLC India has reported its financial results for the quarter ending March 2025, reflecting a mixed performance. The company achieved a notable Profit Before Tax less Other Income (PBT) of Rs 776.18 crore, which represents a significant growth compared to the average PBT of the previous four quarters. This figure is the highest recorded in the last five quarters, indicating a positive trend in the near term.
However, the financial data also reveals challenges. Net sales for the latest six months reached Rs 8,247.46 crore, showing a year-on-year growth of 23%. In contrast, the quarterly results indicate a decline in net sales of 13.04% compared to the previous quarter. The consolidated net profit also experienced a decline of 27.86% quarter on quarter, which is a continuation of the negative trend observed in the previous quarter.

Interest expenses have risen significantly to Rs 325.30 crore, marking a 37.52% increase from the prior quarter, which suggests rising borrowing costs for the company. Additionally, the operating profit to interest ratio has fallen to its lowest level in five quarters at 2.65 times, indicating challenges in managing interest payments. Profit After Tax (PAT) has decreased to Rs 481.96 crore, down 14.5% from the average of the previous four quarters.

Overall, while NLC India has shown strong growth in certain areas, the financial results also highlight significant challenges that the company is currently facing. This has led to an adjustment in its evaluation.