Are Shivalik Rasayan latest results good or bad?

Shivalik Rasayan has reported its financial results for the quarter ending March 2025, revealing a mixed performance. The company experienced a year-on-year growth in Profit After Tax (PAT), which reached Rs 9.40 crore, reflecting a 44.62% increase. However, this positive aspect is overshadowed by significant declines in other key financial metrics.
Net sales for the quarter fell to Rs 69.39 crore, marking a 2.58% decrease compared to the same period last year, and this figure represents the lowest sales recorded in the last five quarters. Furthermore, the Profit Before Tax less Other Income (PBT) has seen a substantial decline of 92.44%, now at Rs 0.27 crore. This decline raises concerns regarding the company's operational performance.

The operating profit margin has also contracted to 8.29%, indicating a reduction in operational efficiency. Additionally, interest expenses have risen to Rs 2.71 crore, the highest level in five quarters, suggesting increased borrowing costs. Notably, a significant portion of the PBT, approximately 95.48%, has come from non-operating income, which may raise questions about the sustainability of the company's income sources.

In light of these results, Shivalik Rasayan has experienced an adjustment in its evaluation, reflecting the challenges faced in its operational metrics despite the growth in PAT.