Are Optiemus Infra latest results good or bad?

Optiemus Infracom has reported its financial results for the quarter ending March 2025, showcasing a Profit After Tax (PAT) of Rs 22.46 crore, which reflects a notable growth compared to the average PAT of Rs 16.23 crore from the previous four quarters. However, the overall financial performance indicates several challenges.
The company experienced a decline in net sales, which stood at Rs 449.26 crore, down 6.9% from the previous four-quarter average. This trend is further supported by a quarterly net sales change of -4.72% compared to the previous quarter. Additionally, the Profit Before Tax (PBT) has decreased by 36.9% to Rs 11.39 crore, compared to the average PBT of Rs 18.05 crore over the same period.

Interest expenses have surged significantly, rising to Rs 23.27 crore, marking an increase of 104.48%, which indicates rising borrowing costs that could impact future profitability. The operating profit to interest ratio has also dropped to its lowest point in five quarters at 3.23 times, suggesting difficulties in managing interest payments effectively.

Moreover, non-operating income constituted a substantial portion of PBT, accounting for 45.84%, which raises concerns regarding the sustainability of the company’s business model.

Overall, while Optiemus Infracom has shown growth in PAT, the financial data reflects underlying operational challenges, leading to an adjustment in its evaluation.