Are TVS Supply latest results good or bad?

TVS Supply Chain Solutions has reported its financial results for the quarter ending March 2025, which indicate a flat financial performance compared to previous quarters. The company's Profit After Tax (PAT) for this quarter is recorded at Rs -4.76 crore, reflecting a notable decline when compared to the average PAT of Rs -1.13 crore over the preceding four quarters. This trend raises concerns regarding the near-term outlook for profitability.
In terms of sales performance, the company experienced a net sales growth of 2.22% compared to the previous quarter, which contrasts with the decline observed in the prior period. The consolidated net profit also showed a significant change, with an 80.69% growth compared to the previous quarter's performance, although it remains in negative territory.

The company's reliance on non-operating income is particularly noteworthy, as it constituted 103.63% of its Profit Before Tax (PBT). This heavy dependence on income from non-business activities raises questions about the sustainability of its operational model.

Additionally, there has been an adjustment in the company's evaluation, reflecting a change in its financial standing over the last three months. Overall, while there are some positive indicators in terms of sales growth and profit recovery, the underlying challenges related to profitability and income sustainability remain significant.