Eternal Ltd Reports Record Sales Amid Declining Profitability and Operational Challenges in March 2025

Eternal Ltd, a large-cap player in the IT software industry, has recently reported its financial results for the quarter ending March 2025. The results indicate a notable shift in the company's financial landscape, with an adjustment in its evaluation reflecting the challenges faced during this period.
On a positive note, Eternal Ltd achieved its highest quarterly net sales at Rs 5,833.00 crore, marking a significant growth compared to the average net sales of the previous four quarters. This upward trend in sales suggests a robust near-term sales trajectory.

However, the financial results also reveal several areas of concern. The profit before tax less other income (PBT) has shown a substantial decline, with a notable negative shift compared to previous averages. Similarly, profit after tax (PAT) has decreased significantly, indicating challenges in maintaining profitability. The operating profit margin has reached its lowest point in five quarters, reflecting a decline in operational efficiency.

Additionally, the company's earnings per share (EPS) have also hit a low, suggesting reduced earnings for shareholders. The debtor turnover ratio has slowed, indicating a longer time frame for settling debts. Furthermore, while non-operating income has surged, its sustainability remains questionable.

Overall, these financial results have led to a revision in Eternal Ltd's score, highlighting the need for strategic adjustments moving forward.

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