Are Protean eGov latest results good or bad?

Protean eGov Technologies has reported its financial results for the quarter ending March 2025, revealing a mixed operational performance. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 222.15 crore, which indicates a positive trend in sales activity. However, profitability faced challenges, as evidenced by a Profit Before Tax (PBT) of Rs 8.70 crore, which reflects a decline compared to the average PBT over the previous four quarters. Profit After Tax (PAT) also saw a decrease, reaching Rs 20.40 crore.
A significant aspect of the financial results is that a large portion of the PBT, specifically 65.53%, was derived from non-operating activities. This raises questions about the sustainability of the company's core business operations.

In terms of quarterly comparisons, the net sales showed a growth of 9.81% compared to the previous quarter, while the consolidated net profit reflected a decrease of 11.03%. The operating profit margin, excluding other income, remained relatively stable, indicating some resilience in operational efficiency despite the challenges faced.

Additionally, the company saw an adjustment in its evaluation over the past three months, which may reflect the complexities of its financial performance during this period. Overall, while Protean eGov Technologies demonstrated strong sales, the decline in profitability and reliance on non-operating income are noteworthy factors for consideration.