Are Swan Defence latest results good or bad?

Swan Defence and Heavy Industries has released its financial results for the quarter ending March 2025. The data indicates a flat financial performance compared to previous quarters. Notably, the company reported an operating profit (PBDIT) of Rs -9.44 crore, which is the highest figure recorded in the last five quarters. Profit before tax (PBT) also reached Rs -27.82 crore, marking the highest level in the same period, while profit after tax (PAT) stood at Rs -20.66 crore, suggesting a positive trend in profitability metrics. Earnings per share (EPS) improved to Rs -4.35, indicating higher earnings for shareholders.
On the revenue side, net sales exhibited a significant growth of 323.28% compared to the previous quarter, reflecting a notable increase in business activity. Additionally, standalone net profit showed a growth of 56.70%, which is an improvement over the prior quarter. However, it is important to note that non-operating income rose to Rs 7.16 crore, the highest in five quarters, which raises questions about the sustainability of this income derived from non-business activities.

Furthermore, the company saw an adjustment in its evaluation over the last three months. Overall, the financial results present a mixed picture, with improvements in certain profitability metrics and significant growth in sales, while also highlighting potential concerns regarding non-operating income.