Are Sterling & Wils. latest results good or bad?

Sterling & Wilson Renewable Energy has reported significant financial results for the quarter ending March 2025, showcasing strong growth in key metrics. The company's net sales reached Rs 2,519.11 crore, reflecting a notable increase of 103.1% compared to the average net sales of Rs 1,240.19 crore over the previous four quarters. Profit Before Tax (PBT) rose to Rs 99.38 crore, a substantial increase of 1562.6% from the average PBT of Rs 5.98 crore in the prior four quarters. Similarly, Profit After Tax (PAT) climbed to Rs 55.38 crore, representing a 705.2% increase from the average PAT of Rs 6.88 crore.
Additionally, the company achieved its highest operating profit margin in the last five quarters at 5.30%, indicating improved operational efficiency. The Earnings per Share (EPS) reached Rs 2.37, marking the highest level in the same period. However, it is noteworthy that interest expenses rose to Rs 62.40 crore, which is a 32.62% increase from the previous half-year, suggesting an uptick in borrowings.

In the subsequent quarter ending June 2025, the financial results indicate a different trend. Net sales experienced a decline of 32.46% compared to the previous quarter, with standalone net profit also declining by 14.92%. The operating profit margin remained relatively stable at 5.29%, showing minimal change from the previous quarter's margin.

Overall, while Sterling & Wilson Renewable Energy demonstrated strong performance in March 2025, the results for June 2025 reflect a shift in operational trends. The company saw an adjustment in its evaluation during this period, highlighting the variability in its financial performance.