Are R K Swamy latest results good or bad?

R K Swamy, a microcap company in the Media & Entertainment sector, has reported its financial results for the quarter ending March 2025. The company experienced flat financial performance during this period, with an adjustment in its evaluation noted over the last three months.
In terms of profitability, R K Swamy reported a Profit After Tax (PAT) of Rs 12.33 crore, which reflects a significant growth compared to the average PAT from the previous four quarters. The Profit Before Tax (PBT), excluding other income, was Rs 11.62 crore, also showing a notable increase compared to prior averages.

However, it is important to note that the company reported its highest non-operating income in the last five quarters at Rs 3.60 crore. This increase in income from non-business activities raises questions regarding sustainability.

Looking at the quarterly results, the company's net sales showed a growth of 8.75% compared to the previous quarter, which is a decline from the 17.02% growth seen in December 2024. The consolidated net profit growth was reported at 239.67%, which is lower than the 598.08% growth in the previous quarter. Additionally, the operating profit margin, excluding other income, was noted at 19.30%, showing a change from the previous quarter.

Overall, while R K Swamy has shown some positive trends in profitability, the reliance on non-operating income and the decline in sales growth may warrant further scrutiny regarding the sustainability of these results.