Are PDS latest results good or bad?

PDS, a midcap player in the garments and apparel industry, has reported its financial results for the quarter ending June 2025, which reflect a challenging operational environment. The company experienced a year-on-year growth in net sales of 14.44%, which is a decline from the previous year's growth rate of 23.93%. This suggests a slowdown in revenue generation.
The Profit Before Tax (PBT) registered at Rs -12.74 crore, indicating a significant year-on-year decline, while the Profit After Tax (PAT) fell to Rs 12.99 crore, down 34.72% compared to the previous year. The Operating Profit (PBDIT) also showed a negative trend, reaching its lowest point in five quarters at Rs 50.55 crore, with the Operating Profit Margin dropping to 1.69%.

Additionally, the Earnings per Share (EPS) fell to Rs 0.92, marking the lowest level in five quarters, which reflects declining profitability. The Dividend Payout Ratio (DPR) decreased to 32.97%, the lowest in five years, indicating a reduced distribution of profits to shareholders. Notably, a substantial portion of the PBT, at 147.38%, was attributed to non-operating income, raising concerns regarding the sustainability of the company's income sources.

In light of these results, the company saw an adjustment in its evaluation, reflecting the challenges it faces in maintaining operational efficiency and profitability.