Are Texmaco Rail latest results good or bad?

Texmaco Rail & Engineering has reported its financial results for the quarter ending March 2025, highlighting 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 performance. However, the overall financial score has undergone an adjustment, reflecting changes in the company's evaluation over the past three months.
In terms of profitability, the profit after tax (PAT) for the quarter was Rs 39.77 crore, which shows a year-on-year decrease of 12.2%. This decline in PAT suggests challenges in maintaining profitability compared to the previous year. Additionally, the operating profit to interest ratio has fallen to 2.84 times, marking the lowest level in five quarters, which may indicate difficulties in managing interest obligations.

Interest expenses have risen significantly, totaling Rs 109.29 crore, an increase of 22.22% over the preceding nine months, contributing to higher borrowing costs for the company. Furthermore, earnings per share (EPS) have dropped to Rs 1.00, the lowest in five quarters, reflecting a decline in returns for shareholders.

Overall, while Texmaco Rail has achieved notable sales figures, the financial results also reveal significant challenges in profitability and cost management.