Are Zenotech Lab. latest results good or bad?

Zenotech Laboratories has reported its financial results for the quarter ending March 2025, showcasing a notable performance in certain areas while facing challenges in others. The company achieved net sales of Rs 12.13 crore, which is the highest figure recorded in the last five quarters and reflects a growth of 21.2% compared to the average net sales of Rs 10.01 crore over the previous four quarters. This upward trend in sales is complemented by an operating profit (PBDIT) of Rs 4.47 crore, also the highest in the last five quarters, resulting in an operating profit margin of 36.85%.
However, the profit after tax (PAT) for the latest six months is reported at Rs 2.60 crore, indicating a decline of 35.26% year on year. This decline in PAT contrasts with the positive trends observed in sales and operating profit, raising concerns regarding the company's profitability trajectory.

Additionally, in comparison to the previous quarter (December 2024), Zenotech Laboratories experienced a net sales growth of 8.71%, while the standalone net profit saw a decline of 27.22%. The operating profit margin, although still strong at 36.85%, reflects a slight adjustment from the previous quarter's margin of 40.23%.

Overall, while Zenotech Laboratories has demonstrated strong sales and operating profit figures, the decline in PAT and the changes in net profit performance suggest a mixed financial outlook. The company saw an adjustment in its evaluation based on these results.