Are Z F Steering latest results good or bad?

Z F Steering Gear (India) has reported its financial results for the quarter ending March 2025, highlighting a mix of trends in its performance. The company achieved its highest quarterly net sales in the last five quarters, totaling Rs 137.02 crore, which reflects a positive near-term sales trend with a quarter-on-quarter growth of 16.53%. However, despite this increase in sales, several key financial metrics indicate challenges.
The operating profit to interest ratio has fallen to 6.08 times, marking the lowest level in five quarters, which suggests a declining ability to manage interest payments effectively. Profit Before Tax (PBT) registered at Rs -0.34 crore, representing a notable decline compared to the average PBT of the previous four quarters. Additionally, Profit After Tax (PAT) decreased by 19.8% to Rs 3.87 crore, while interest expenses surged by 49.09% quarter on quarter, reaching Rs 2.46 crore. The reliance on non-operating income, which accounted for 106.02% of PBT, raises concerns about the sustainability of the company's business model.

Overall, while Z F Steering Gear has shown a positive trend in net sales, the financial results reveal significant operational challenges, leading to an adjustment in its evaluation.