Are Sky Gold & Diam. latest results good or bad?

Sky Gold & Diamonds has reported its financial results for the quarter ending June 2025, showcasing notable operational trends. The company achieved net sales of Rs 1,131.24 crore, which reflects a 27.5% increase compared to the average of the previous four quarters, marking the highest quarterly sales in the last five quarters. This growth is complemented by an operating profit before depreciation, interest, and taxes (PBDIT) of Rs 71.37 crore, indicating a positive trend in operational efficiency with an operating profit margin of 6.31%.
Profit before tax (PBT) reached Rs 54.53 crore, showing a significant growth of 54.4% over the previous four-quarter average, while profit after tax (PAT) was reported at Rs 43.59 crore, up 31.4% from the previous average. Additionally, the company experienced a quarter-on-quarter growth in net profit of 14.20% compared to the previous quarter, alongside a 6.91% growth in net sales.

However, the company is facing challenges, particularly with rising interest costs amounting to Rs 27.32 crore, which have increased by 22.40% over the previous half-year period, indicating higher borrowings. On a positive note, the debt-equity ratio has improved to 0.92 times, the lowest in the last five half-year periods, suggesting a reduction in borrowing relative to equity capital. Nevertheless, the debtors turnover ratio has declined to 7.85 times, indicating a slower pace in settling debts.

Overall, the financial data indicates that Sky Gold & Diamonds has seen an adjustment in its evaluation, reflecting the complexities of its operational performance amidst rising costs and changes in debt management.