Are Texmaco Rail latest results good or bad?

Texmaco Rail & Engineering has reported its financial results for the quarter ending March 2025, revealing a mixed performance. The company achieved net sales of Rs 1,346.36 crore, which represents the highest quarterly sales in the last five quarters, indicating a positive trend in sales on a near-term basis. However, the evaluation of the company has seen an adjustment over the past three months.
In terms of profitability, the profit after tax (PAT) for the quarter was Rs 39.77 crore, reflecting a year-on-year decline of 12.2%, contrasting sharply with the previous year's growth. This decline suggests challenges in maintaining profitability levels. Additionally, the operating profit to interest ratio has decreased to 2.84 times, the lowest in five quarters, indicating a potential issue in managing interest obligations.

Interest expenses have risen significantly, totaling Rs 109.29 crore, which is a 22.22% increase over the preceding nine months, suggesting higher borrowing costs for the company. Furthermore, earnings per share (EPS) have fallen to Rs 1.00, marking the lowest level in five quarters and highlighting a reduction in returns for shareholders.

Overall, while Texmaco Rail has achieved notable sales figures, the decline in profitability metrics and rising costs present challenges that the company will need to address moving forward.