Are SMS Pharma. latest results good or bad?

SMS Pharmaceuticals has reported its financial results for the quarter ending June 2025, showcasing a mixed performance across various metrics. The company achieved a profit after tax (PAT) of Rs 20.49 crore, which is the highest in the last five quarters, along with an earnings per share (EPS) of Rs 2.31, also reflecting the highest level during the same timeframe. This indicates a positive trend in profitability for shareholders.
On the liquidity front, SMS Pharmaceuticals reported cash and cash equivalents of Rs 41.59 crore, the highest in the last six half-yearly periods, suggesting an enhancement in short-term liquidity. Additionally, the debt-equity ratio has improved to 0.49 times, marking the lowest level in the last five half-yearly periods, which reflects a reduction in borrowing relative to equity capital.

However, the company is also facing challenges. The operating profit to interest ratio has declined to 6.74 times, the lowest in the last five quarters, indicating a decrease in its ability to manage interest payments. Furthermore, interest expenses have risen to Rs 5.84 crore, representing a 15.19% increase quarter-over-quarter, which highlights the impact of increased borrowings.

In terms of sales performance, SMS Pharmaceuticals experienced a net sales decline of 21.01% compared to the previous quarter, contrasting with a growth of 43.18% in the quarter ending March 2025. The consolidated net profit growth was marginal at 0.84%, down from 11.40% in the prior quarter. The operating profit margin, while showing a slight increase, reflects a more complex operational environment.

Overall, SMS Pharmaceuticals has seen an adjustment in its evaluation, reflecting the balance between its profitability improvements and the challenges it faces in operational management and sales performance.