Are Sudarshan Chem latest results good or bad?

Sudarshan Chemical Industries has reported its financial results for the quarter ending December 2024, revealing a complex operational landscape. The company experienced a year-on-year growth in net sales of 17.80%, indicating a positive trend in revenue generation compared to the previous year. However, the consolidated net profit showed a significant decline of 96.50%, highlighting challenges in maintaining overall profitability.
Profit Before Tax (PBT) demonstrated a notable year-on-year growth of 74.23%, reaching Rs 31.03 crore, which suggests some operational strengths in the near term. Conversely, Profit After Tax (PAT) faced a sharp decline of 73.5%, falling to Rs 3.86 crore, which raises concerns regarding profitability for shareholders.

The company also reported its highest quarterly interest expense in the last five quarters at Rs 11.41 crore, marking a 28.49% increase quarter-on-quarter. This rise in interest costs reflects increased borrowings, resulting in the lowest operating profit to interest ratio at 6.92 times in the past five quarters. Additionally, the Earnings per Share (EPS) reached its lowest point at Rs 0.07, further indicating declining profitability.

Overall, while Sudarshan Chemical Industries has shown growth in certain areas such as net sales and PBT, the significant drop in PAT and rising interest expenses suggest underlying challenges. The company saw an adjustment in its evaluation during this period, reflecting the mixed results of its financial performance.