Are Rishiroop latest results good or bad?

Rishiroop has released its financial results for the quarter ending June 2025, which present a mixed picture of the company's performance. The company reported a Profit After Tax (PAT) of Rs 8.67 crore, which represents a significant growth compared to the average PAT of Rs 2.66 crore over the previous four quarters. This PAT is the highest recorded in the last five quarters, indicating a positive trend in profitability for the company. Additionally, the Earnings per Share (EPS) reached Rs 9.47, also reflecting the highest level in the last five quarters.
However, Rishiroop faced challenges with its net sales, which fell to Rs 17.66 crore, a decline compared to the average net sales of Rs 18.59 crore from the previous four quarters. This decline in net sales is notable, especially as it contrasts with the significant growth in PAT. Furthermore, a considerable portion of the company's income, specifically 87.99% of Profit Before Tax (PBT), was derived from non-operating sources, raising questions about the sustainability of its business model.

In terms of operational metrics, the company reported a quarterly net sales decline of 5.81% compared to the previous quarter. Conversely, the standalone net profit exhibited a substantial growth of 462.76% in the same period. The operating profit margin, excluding other income, saw a slight decline, indicating some pressure on operational efficiency.

Overall, Rishiroop's financial results reflect a complex scenario where significant profitability growth is juxtaposed with declining sales and reliance on non-operating income. Additionally, the company saw an adjustment in its evaluation over the past three months.