Are Tulsyan NEC latest results good or bad?

Tulsyan NEC has reported its financial results for the quarter ending March 2025, which indicate a challenging operational environment. The company experienced a significant decline in key financial metrics, with Profit Before Tax (PBT) falling to Rs -43.01 crore, which is a notable drop compared to the previous average PBT of Rs -13.40 crore. Similarly, Profit After Tax (PAT) decreased to Rs -41.83 crore, reflecting a substantial decline from the prior average of Rs -12.66 crore.
Interest expenses have surged to Rs 39.01 crore, marking a considerable increase quarter on quarter, suggesting a rise in borrowings and financial strain. Net sales for the latest six months reached Rs 394.22 crore, which is down 20.24% year on year. Additionally, the earnings per share (EPS) have fallen to Rs -25.41, and cash and cash equivalents have dropped to Rs 0.34 crore, the lowest in the last six half-yearly periods. The debt-equity ratio has risen to 1.49 times, indicating a greater reliance on debt to fund operations.

In the quarterly results snapshot, the company reported a net sales growth of 18.73% compared to the previous quarter, which contrasts with a decline in consolidated net profit of -55.16%. Operating profit margins also reflected a decrease, suggesting ongoing operational challenges.

Overall, the financial data presents a picture of significant operational difficulties for Tulsyan NEC, leading to an adjustment in its evaluation.