Are Sanghvi Movers latest results good or bad?

Sanghvi Movers has released its financial results for the quarter ending June 2025, showcasing significant year-on-year growth in net sales and profits. The company reported net sales of Rs 273.36 crore, reflecting a year-on-year growth of 81.50%, marking the highest quarterly sales in the last five quarters. Additionally, the profit before tax (PBT) reached Rs 60.85 crore, which is a year-on-year increase of 70.31%, while the profit after tax (PAT) also saw a rise to Rs 50.26 crore, up by 24.1% compared to the previous year.
Despite these positive developments, there are challenges that Sanghvi Movers faces. The debt-equity ratio has risen to its highest level in the last five half-yearly periods at 0.39 times, indicating increased borrowing to support operations, which may have implications for liquidity. Furthermore, the debtors turnover ratio has declined to its lowest point at 3.25 times, suggesting a slower pace in settling debts.

It is also noted that the company experienced an adjustment in its evaluation over the past three months. Overall, while Sanghvi Movers has demonstrated strong sales and profit growth, the rising debt levels and declining debtor turnover present areas of concern that may impact future operational performance.