Are SBI Cards latest results good or bad?

SBI Cards & Payment Services has reported its financial results for the quarter ending March 2025, highlighting a notable achievement in net sales, which reached Rs 4,673.95 crore, marking the highest quarterly sales in the last five quarters. This reflects a positive near-term sales trend, with a quarter-on-quarter growth of 1.20%. However, the company faced challenges in profitability, as the Profit After Tax (PAT) for the latest six months was Rs 917.41 crore, showing a year-on-year decline of 24.27%. This decline indicates a need for the company to address its profitability issues moving forward.
In terms of operational performance, SBI Cards recorded a standalone net profit of Rs 534.18 crore for the quarter, which represents a quarter-on-quarter growth of 39.39%. This is a positive development compared to the previous quarter, where the profit had declined. Additionally, the company achieved its highest non-operating income in the last five quarters at Rs 157.79 crore, although this raises questions about the long-term sustainability of such income.

Overall, while SBI Cards has demonstrated strong sales growth, it is facing challenges in profitability and the sustainability of non-operating income. The company saw an adjustment in its evaluation over the last three months, suggesting a potential stabilization in its financial performance.