Are Shekhawati Inds latest results good or bad?

Shekhawati Industries has released its financial results for the quarter ending June 2025, showing a notable profit after tax (PAT) of Rs 2.81 crore, which reflects a significant growth compared to the average PAT of Rs 1.57 crore over the previous four quarters. This quarter's PAT is the highest recorded in the last five quarters, indicating a positive trend in profitability.
In terms of profit before tax (PBT), the company reported Rs 1.57 crore, marking an improvement from the average PBT of Rs 1.13 crore in the previous four quarters. The earnings per share (EPS) also rose to Rs 0.82, the highest in five quarters, suggesting enhanced profitability for shareholders.

However, the company faced challenges, particularly with net sales for the latest six months declining by 65.62% year-on-year, which points to a concerning sales trend. Additionally, non-operating income made up 44.13% of the PBT, raising questions about the sustainability of its business model.

The quarterly results indicate a net sales decline of 72.63% compared to the previous quarter, while the standalone net profit showed a substantial increase of 1,856.25%. The operating profit margin, excluding other income, was reported at 60.09%, reflecting a significant change from the previous quarter.

Overall, Shekhawati Industries has seen an adjustment in its evaluation following these results, highlighting both the positive aspects of profitability and the challenges related to sales performance.