Are REC Ltd latest results good or bad?

REC Ltd has reported its financial results for the quarter ending June 2025, highlighting several operational trends. The company achieved an operating profit (PBDIT) of Rs 14,520.76 crore, which is the highest in the last five quarters. Profit before tax (PBT) also reached a notable Rs 5,579.88 crore, marking a peak for the same period. Profit after tax (PAT) stood at Rs 4,465.71 crore, indicating consistent growth across the quarters. Additionally, earnings per share (EPS) rose to Rs 16.96, reflecting enhanced profitability for shareholders.
On the balance sheet, REC Ltd reported a debt-equity ratio of 6.33 times, the lowest in the last ten half-yearly periods, suggesting a reduction in borrowing relative to equity capital. However, the company experienced a decline in cash and cash equivalents, which fell to Rs 2,343.37 crore, indicating a potential concern regarding short-term liquidity. Furthermore, non-operating income was reported at Rs 86.53 crore, raising questions about its sustainability.

In terms of growth metrics, net sales showed a decline of 4.00% compared to the previous quarter, while consolidated net profit grew by 3.61%. The operating profit margin (excluding other income) was reported at 98.53%, indicating a strong operational efficiency despite the challenges in net sales.

Overall, REC Ltd's results reflect a mix of positive operational performance alongside some areas of concern, particularly in liquidity and sales growth. Additionally, the company saw an adjustment in its evaluation over the past three months.