Are Scan Steels latest results good or bad?

Scan Steels has reported its financial results for the quarter ending March 2025, revealing several operational challenges. The Profit After Tax (PAT) for this quarter is recorded at Rs 4.74 crore, which represents a notable decline of 33.1% compared to the average PAT of Rs 7.09 crore over the previous four quarters. This decline indicates ongoing difficulties in achieving profitability.
In terms of sales performance, the net sales for the nine-month period reached Rs 555.65 crore, reflecting a year-on-year decline of 24.74%. This trend highlights the company's struggle in the current market environment.

On a quarterly basis, the net sales showed a growth of 38.21% compared to the previous quarter, which is an improvement from the 24.69% growth seen in December 2024. However, the consolidated net profit for the same quarter increased by 50.00%, a decrease from the much higher growth of 476.19% in the prior quarter, indicating a slowdown in profit growth.

Moreover, the operating profit margin (excluding other income) has seen a slight decline, moving from 3.70% in December 2024 to a lower figure in the latest quarter.

Overall, while there has been a slight adjustment in the company's evaluation, the underlying performance metrics suggest that Scan Steels continues to face significant challenges in growth and profitability.