Are Royale Manor latest results good or bad?

Royale Manor Hotels & Industries has reported its financial results for the quarter ending March 2025, highlighting several key operational metrics. The company recorded its highest operating profit (PBDIT) in the last five quarters at Rs 1.97 crore, which reflects a positive trend in its operational performance. Additionally, profit before tax (PBT) reached Rs 1.43 crore, also the highest in the same timeframe, while profit after tax (PAT) stood at Rs 1.81 crore, indicating a peak performance in profitability.
However, the company is facing challenges as a significant portion of its profit before tax, specifically 42.57%, is derived from non-operating income. This reliance on non-business activities raises concerns about the sustainability of its business model moving forward.

In terms of growth, the net sales for the quarter showed a year-on-year increase of 7.16%, although this is a decline from the previous year’s growth of 13.31%. Similarly, standalone net profit growth was reported at 17.53%, down from 26.23% in the prior year. The operating profit margin, excluding other income, was slightly adjusted to 25.79%.

Overall, Royale Manor has seen an adjustment in its evaluation over the past three months, reflecting the changes in its financial performance and operational trends.