Are Sundaram Finance latest results good or bad?

Sundaram Finance has released its financial results for the quarter ending June 2025, showcasing a mix of operational trends. The company achieved its highest quarterly net sales at Rs 2,348.93 crore, reflecting consistent growth over the last five quarters. Additionally, the Profit After Tax (PAT) for the latest six months reached Rs 1,028.19 crore, indicating a year-on-year growth of 33.76%. Furthermore, the company improved its cash and cash equivalents to Rs 2,131.93 crore, the highest in the last six half-yearly periods, which suggests enhanced short-term liquidity.
However, the company also faced challenges, particularly with its operating cash flow, which recorded its lowest annual figure at Rs -8,985.25 crore, continuing a downward trend over the past three years. This decline points to a concerning reduction in cash revenues from business operations.

In terms of quarterly performance, the net sales showed a growth of 3.98% compared to the previous quarter. However, the consolidated net profit experienced a decline of 14.06% from the prior quarter. The operating profit margin, excluding other income, also saw a decrease of 7.49%.

Overall, Sundaram Finance's financial results indicate a complex scenario with notable achievements in sales and liquidity, contrasted by challenges in profitability and cash flow. Additionally, the company saw an adjustment in its evaluation over the past three months.