Are Sangam India latest results good or bad?

Sangam India has reported its financial results for the quarter ending March 2025, which reflect several concerning trends. The company's Profit Before Tax (PBT) has declined significantly to Rs 2.38 crore, which is substantially lower than the average PBT of Rs 12.58 crore over the previous four quarters. This sharp decline indicates challenges in maintaining profitability in the near term.
For the latest six months, the Profit After Tax (PAT) stands at Rs 13.67 crore, showing a year-on-year decrease of 31.98%. This trend raises concerns about the company's overall financial health. Additionally, the quarterly interest expenses have risen to Rs 25.47 crore, marking an 18.74% increase from the previous quarter, suggesting a growing reliance on borrowings that may impact future financial stability.

The operating profit margin has fallen to 7.86%, the lowest level in the past five quarters, indicating a decline in operational efficiency. Furthermore, a significant portion of the PBT, approximately 83.54%, is derived from non-operating income, which was reported at Rs 12.08 crore for the latest quarter. This reliance on non-operating income raises questions about the sustainability of the company's revenue sources.

In summary, Sangam India is facing notable challenges in profitability and operational efficiency, which may have contributed to an adjustment in its evaluation. The financial data indicates a complex situation that requires careful consideration moving forward.