Are Suraj latest results good or bad?

Suraj, a microcap company in the iron and steel products industry, has reported its financial results for the quarter ending June 2025. The data indicates a notable decline in financial performance, with the company experiencing a substantial drop in profit before tax (PBT) by 71.75% year-on-year, amounting to Rs 2.00 crore. Profit after tax (PAT) also saw a decrease of 51.9% year-on-year, totaling Rs 2.74 crore.
Net sales for the quarter reached Rs 50.34 crore, reflecting a decline of 8.04% compared to the previous year. Operating profit, excluding other income, decreased significantly by 46.28%, highlighting challenges in operational efficiency. Additionally, interest expenses rose by 63.13% over the previous half-year, indicating increased borrowing costs. Operating cash flow has reached its lowest level in three years, recorded at Rs -9.01 crore.

On a positive note, Suraj declared its highest annual dividend per share (DPS) in the last five years at Rs 1.50, with a dividend payout ratio (DPR) at a five-year high of 23.53%. This reflects a commitment to returning profits to shareholders despite the operational challenges faced.

Furthermore, the company saw an adjustment in its evaluation over the past three months. Overall, the financial results present a mixed picture, with significant operational challenges alongside a commitment to shareholder returns.