Are Veranda Learning latest results good or bad?

Veranda Learning Solutions has released its financial results for the quarter ending March 2025, highlighting several key operational trends. The company reported a Profit After Tax (PAT) of Rs 4.84 crore, which represents a notable growth compared to the average PAT of Rs -72.91 crore from the previous four quarters, marking the highest PAT recorded in the last five quarters. This indicates a positive near-term trend in profitability.
For the nine-month period, net sales reached Rs 351.88 crore, reflecting a year-on-year growth of 20.17%. The Earnings per Share (EPS) for the quarter is reported at Rs 0.65, also the highest in the last five quarters, suggesting an enhancement in profitability for shareholders.

However, the company is experiencing challenges, particularly with a significant rise in non-operating income, which has surged to 730.02% of Profit Before Tax (PBT), reaching Rs 38.91 crore for the quarter. This heavy reliance on non-business activities raises questions about the sustainability of its income model.

In terms of quarterly performance, net sales showed a growth of 15.09% compared to the previous quarter, while consolidated net profit exhibited a growth of 102.50%. Operating profit margin, excluding other income, improved by 50.25%, indicating a positive shift in operational efficiency.

Overall, Veranda Learning Solutions has seen an adjustment in its evaluation, reflecting the complexities of its financial landscape amidst both growth and challenges.