Are Scan Steels latest results good or bad?

Scan Steels has reported its financial results for the quarter ending March 2025, which reveal several operational challenges. The Profit After Tax (PAT) for this quarter is recorded at Rs 4.74 crore, reflecting 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 for the company in maintaining profitability.
In terms of net sales, the company reported Rs 555.65 crore for the nine-month period, which represents a year-on-year decline of 24.74%. This trend in sales further emphasizes the challenges Scan Steels is facing in the current market environment.

On a quarterly basis, there was a reported net sales growth of 38.21% compared to the previous quarter, which contrasts with the significant year-on-year decline. The consolidated net profit showed a growth of 50.00% quarter-on-quarter, although this is against a backdrop of a much higher growth percentage in the previous quarter, indicating a potential slowdown in momentum.

The operating profit margin, excluding other income, has also seen a decline, suggesting that the company is facing pressures on its operational efficiency.

Overall, while there has been an adjustment in the company's evaluation, the underlying performance metrics indicate continued struggles for growth and profitability in the current market landscape.