Are Primo Chemicals latest results good or bad?

Primo Chemicals has reported its financial results for the quarter ending June 2025, showcasing a notable shift in profitability metrics. The Profit Before Tax (PBT) reached Rs 1.82 crore, reflecting a substantial growth compared to the average PBT of the previous four quarters, which was Rs -1.44 crore. Similarly, the Profit After Tax (PAT) surged to Rs 4.08 crore, indicating a significant increase over the average PAT of Rs 0.89 crore from the prior four quarters.
However, the company's net sales for the latest six months stood at Rs 297.36 crore, which represents a year-on-year growth of 32.51%. In contrast, the quarterly results show a decrease in net sales for the quarter ended June 2025 of 8.67% compared to the previous quarter. The consolidated net profit for this quarter exhibited a remarkable growth of 1,095.12% compared to the previous quarter, although the operating profit margin (excluding other income) saw a slight decline.

Additionally, the inventory turnover ratio has dropped to 16.39 times, the lowest in the last five half-year periods, indicating a slowdown in the pace of selling inventory. Furthermore, a significant portion of the PBT, approximately 74.33%, came from non-operating income, which raises questions regarding the sustainability of the company's core business operations.

Overall, these results suggest a complex operational landscape for Primo Chemicals, with both positive profitability trends and concerns regarding inventory management and reliance on non-operating income. The company also experienced an adjustment in its evaluation during this reporting period.