Are Sky Industries latest results good or bad?

Sky Industries has reported its financial results for the quarter ending June 2025, with a notable decline in several key metrics. The company's net sales reached Rs 19.23 crore, which is an 8.5% reduction compared to the average of Rs 21.02 crore over the previous four quarters. Operating profit fell to Rs 1.59 crore, marking the lowest level in five quarters, resulting in an operating profit margin of 8.27%. Additionally, profit before tax decreased to Rs 0.86 crore, and earnings per share dropped to Rs 1.25, both representing the lowest figures in the last five quarters. The dividend payout ratio also saw a reduction to 12.90%, indicating a lower distribution of profits to shareholders.
On a more positive note, the Debtors Turnover Ratio improved to 7.82 times, the highest performance in the last five half-yearly periods, suggesting that the company has been effective in settling its debts more quickly.

Furthermore, the company experienced an adjustment in its evaluation over the past three months.

In the subsequent quarter ending September 2025, Sky Industries reported a significant recovery in its financial performance. Net sales showed a growth of 29.44% compared to the previous quarter, reaching Rs 24.40 crore. Operating profit also demonstrated a substantial increase, rising to Rs 3.13 crore, which reflects a notable improvement in operating profit margin to 12.83%. Standalone net profit surged to Rs 1.75 crore, indicating a positive shift in profitability. Overall, the financial data from the subsequent quarter suggests a turnaround in operational performance for Sky Industries.