Are Seshasayee Paper latest results good or bad?

Seshasayee Paper & Boards has reported financial results for the quarter ending June 2025 that reflect significant declines across several key performance metrics. The company's Profit Before Tax (PBT) has fallen to Rs 7.88 crore, which is a notable year-on-year decrease of 77.86%. Additionally, the Profit After Tax (PAT) is reported at Rs 15.43 crore, down 58.3% compared to the same period last year.
The net sales for the quarter have reached Rs 385.40 crore, marking an 8.72% decline year-on-year and representing the lowest sales recorded in the last five quarters. This trend indicates challenges in revenue generation for the company. Furthermore, the inventory turnover ratio has decreased to 4.96 times, the lowest in five half-yearly periods, suggesting a slowdown in inventory sales.

Concerns about the sustainability of the business model are raised by the fact that non-operating income makes up 63.25% of the PBT. The earnings per share (EPS) have also decreased to Rs 2.56, the lowest in five quarters, indicating declining profitability. Additionally, the debtors turnover ratio has fallen to 11.84 times, which points to a slowdown in the collection of debts.

Overall, the financial data indicates that Seshasayee Paper & Boards is facing operational challenges, and the company has seen an adjustment in its evaluation.