Are Vinyl Chemicals latest results good or bad?

Vinyl Chemicals (I) has reported its financial results for the quarter ending June 2025, which highlight several concerning trends. The company experienced a notable decline in key financial metrics, with Profit Before Tax less Other Income (PBT) falling to Rs 1.93 crore, a significant drop compared to the average of Rs 6.35 crore over the previous four quarters. Profit After Tax (PAT) also decreased, landing at Rs 4.45 crore, down from an average of Rs 5.58 crore in prior quarters.
The operating profit reached its lowest level in five quarters at Rs 1.97 crore, indicating challenges in operational efficiency. The operating profit margin has decreased to 1.30%, marking the lowest recorded in the last five quarters, which reflects a decline in the company’s operational effectiveness. Furthermore, a substantial portion of the PBT, approximately 67.94%, was derived from non-operating income, raising questions about the sustainability of the business model.

Earnings per Share (EPS) fell to Rs 2.43, also the lowest in five quarters, suggesting a decline in profitability for shareholders. The quarterly results show a QoQ decline in net sales of 12.52% and a significant drop in standalone net profit of 38.79%, compared to the previous quarter.

Overall, these results indicate that Vinyl Chemicals (I) is facing operational challenges and a decline in profitability, leading to an adjustment in its evaluation.