Are Reliable Data latest results good or bad?

Reliable Data Services has reported its financial results for the quarter ending March 2025, showcasing notable year-on-year growth in both net sales and profit after tax. The company achieved net sales of Rs 53.01 crore, reflecting a significant increase of 90.55% compared to the same period last year, marking the highest quarterly sales in the last five quarters. Additionally, profit after tax rose to Rs 3.87 crore, representing a substantial growth of 133.6% year-on-year.
However, the company is also facing challenges. Interest expenses have surged to Rs 1.02 crore, indicating a notable rise in borrowings. Furthermore, the operating profit margin has fallen to 6.40%, the lowest in five quarters, which suggests a decline in operational efficiency. Profit before tax, excluding other income, decreased to Rs 0.97 crore, also the lowest in the past five quarters. It is important to note that a significant portion of profit before tax, approximately 79.66%, was derived from non-operating income, raising concerns about the sustainability of the company's income sources.

In light of these results, Reliable Data Services has experienced an adjustment in its evaluation, reflecting the mixed nature of its financial performance.