Are Zinka Logistics latest results good or bad?

Zinka Logistics Solutions has reported its financial results for the quarter ending June 2025, showcasing a mixed performance. The company achieved a profit before tax (PBT) of Rs 29.83 crore, which represents a substantial growth compared to the average PBT of Rs 6.36 crore from the previous four quarters. This upward trend is also evident in the net sales, which reached a record Rs 143.65 crore, reflecting a notable increase from the average of Rs 106.69 crore in the prior four quarters.
Operating profit for the quarter stood at Rs 40.43 crore, marking the highest figure in the last five quarters, indicating operational strength. However, the profit after tax (PAT) experienced a decline to Rs 33.70 crore, which is significantly lower than the average PAT of Rs 83.89 crore from the previous four quarters. This decline raises questions about the sustainability of earnings, especially as non-operating income accounted for a considerable portion of PBT at 34.78%.

In terms of quarterly performance, net sales showed a growth of 17.93% compared to the previous quarter, while consolidated net profit saw a decline of 87.97%. The operating profit margin, excluding other income, decreased slightly, indicating some pressure on profitability.

Overall, Zinka Logistics Solutions has seen an adjustment in its evaluation, reflecting the complexities of its financial performance amidst strong sales growth and challenges in profit sustainability.