Are SEPC latest results good or bad?

SEPC has reported its financial results for the quarter ending March 2025, revealing a mixed operational performance. The Profit Before Tax (PBT) reached Rs 1.71 crore, showing a notable growth compared to the average PBT of the previous four quarters, which was negative. The Profit After Tax (PAT) also demonstrated an increase, standing at Rs 10.02 crore, surpassing the average PAT from prior quarters. Additionally, the Earnings per Share (EPS) reached Rs 0.06, marking its highest level in five quarters.
However, SEPC faced challenges as net sales fell to Rs 117.80 crore, reflecting a decline from the previous four-quarter average and marking the lowest sales figure in five quarters. The rise in interest expenses to Rs 12.31 crore indicates higher borrowing costs, which could impact future profitability. Furthermore, a significant portion of the PBT, approximately 82.93%, was derived from non-operating income, raising questions about the sustainability of the company's core business operations.

Overall, while SEPC has shown growth in profitability metrics, the decline in sales and rising interest expenses suggest underlying operational challenges. The company saw an adjustment in its evaluation based on these results.