Are Fedders Holding latest results good or bad?

Fedders Holding has reported its financial results for the quarter ending March 2025, which reveal a complex picture of the company's performance. Notably, the company has seen a slight adjustment in its evaluation, indicating a change in its financial standing over the past three months.
In terms of financial metrics, the net sales for the latest six months amount to Rs 198.06 crore, which reflects a year-on-year decrease of 39.49%. However, for the quarter ended March 2025, there was a reported quarter-on-quarter growth in net sales of 23.19%, compared to a previous growth of 4.27% in December 2024. This suggests some recovery in sales momentum on a quarterly basis.

The consolidated net profit for the quarter ended March 2025 stands at Rs 6.62 crore, showing a quarter-on-quarter growth of 64.27% from Rs 4.03 crore in December 2024, which was previously in a negative trajectory. This indicates a notable recovery in profitability for the most recent quarter.

Despite these positive quarterly trends, the overall financial performance remains concerning. The Profit After Tax (PAT) has significantly declined to Rs 5.78 crore, down 46.1% compared to the average PAT of Rs 10.72 crore from the previous four quarters. Additionally, the company's reliance on non-operating income, which constitutes a substantial portion of its Profit Before Tax (PBT), raises questions about the sustainability of its operational model.

Furthermore, Fedders Holding's cash and cash equivalents have reached Rs 71.50 crore, marking the highest level in the last six half-yearly periods, which suggests an improvement in short-term liquidity. However, the challenges posed by declining sales and profitability remain critical areas for the company to address moving forward.