Are Suryoday Small latest results good or bad?

Suryoday Small Finance Bank has reported its financial results for the quarter ending March 2025, which reveal significant declines across several key performance metrics. The Profit Before Tax less Other Income (PBT) registered at Rs -106.88 crore, contrasting sharply with the average PBT of Rs 12.23 crore from the previous four quarters. Similarly, the Profit After Tax (PAT) was reported at Rs -33.78 crore, a notable decline from the average PAT of Rs 52.40 crore in prior quarters.
The bank's Gross Non-Performing Assets (NPA) reached a five-quarter high of 7.16%, indicating a rise in stressed loans, which may impact future profitability. Additionally, the Net Interest Income fell to Rs 244.66 crore, marking the lowest level in the last five quarters. The Operating Profit was recorded at Rs -13.46 crore, with an Operating Profit Margin of -2.86%, reflecting challenges in operational efficiency. Earnings per Share (EPS) also declined to Rs -3.18, suggesting lower earnings for shareholders.

In terms of quarterly performance, the Interest Earned showed a QoQ change of -3.54% for the quarter ended March 2025, compared to -3.82% in December 2024. The Net Profit exhibited a QoQ change of -201.44%, a stark contrast to the -26.64% recorded in the prior quarter. The percentage of Net NPAs increased from 4.58% to 7.16%, while the Gross NPAs also rose, indicating a trend of increasing loan stress.

Overall, these results suggest that Suryoday Small Finance Bank is facing significant operational challenges, leading to an adjustment in its evaluation.