Are Sundrop Brands latest results good or bad?

Sundrop Brands has reported its financial results for the quarter ending March 2025, showcasing a complex picture of performance. The company declared a profit after tax (PAT) of Rs 28.92 crore, which reflects a substantial growth compared to the average PAT of Rs 1.67 crore over the previous four quarters. Additionally, net sales reached Rs 303.87 crore, indicating a significant increase from the average net sales of Rs 193.35 crore in the prior four quarters.
However, the results also reveal challenges for Sundrop Brands. The profit before tax less other income (PBT) fell to Rs -9.98 crore, marking a notable decline from the previous four-quarter average of Rs 2.07 crore. Operating profit dipped to Rs -0.36 crore, resulting in an operating profit margin of -0.12%, which is the lowest recorded in five quarters. Furthermore, earnings per share (EPS) decreased to Rs -30.25, suggesting a decline in profitability for shareholders.

On a quarter-over-quarter basis, net sales showed a growth of 45.88% compared to the previous quarter, while consolidated net profit experienced a significant decline of 3,016.88%. The operating profit margin also reflected a negative trend, with a margin of -0.12%, indicating operational difficulties.

Despite the rise in non-operating income to Rs 1.61 crore, which is the highest in five quarters, its sustainability remains uncertain. Overall, Sundrop Brands has seen an adjustment in its evaluation, reflecting the mixed operational trends and financial results reported.