Are Protean eGov latest results good or bad?

Protean eGov Technologies has released its financial results for the quarter ending June 2025, which highlight several operational trends. The company reported a Profit After Tax (PAT) of Rs 67.18 crore for the nine-month period, showing a year-on-year growth of 20.81%. However, the quarterly performance indicates a decline in key metrics, with the Profit Before Tax less Other Income (PBT) at Rs 3.85 crore, reflecting a significant decrease compared to the average PBT of Rs 12.56 crore from the previous four quarters. This marks the lowest PBT recorded in the last five quarters, suggesting a negative trend in the near term.
Additionally, the company's reliance on non-operating income is notable, as it constituted 88.11% of the PBT, with the highest non-operating income reported at Rs 28.52 crore in the last five quarters. This raises concerns regarding the sustainability of the company's income model.

In terms of sales, the net sales for the quarter ended June 2025 experienced a decline of 5.09% compared to the previous quarter, contrasting with a growth of 9.81% in March 2025. The consolidated net profit showed a growth of 16.91% in the same quarter, compared to a decline of 11.03% in the prior quarter. The operating profit margin, excluding other income, saw a slight decrease of 0.27%.

Overall, the financial results indicate a complex operational landscape for Protean eGov Technologies, with an adjustment in its evaluation noted over the past three months.