Are Longspur International Ventures Ltd latest results good or bad?

Longspur International Ventures Ltd's latest financial results reveal a complex picture of operational performance. In the quarter ended September 2025, the company experienced a significant decline in net sales, with a year-on-year decrease of 89.97%, contrasting sharply with the previous year's growth of 778.95%. This stark reduction indicates a considerable challenge in generating revenue from its core operations. On a more positive note, the standalone net profit showed a year-on-year increase of 65.00%, improving from a loss in the same quarter of the previous year. This suggests that while sales have plummeted, the company has managed to enhance its profitability metrics, albeit from a low base. The operating profit margin, excluding other income, also demonstrated a notable improvement, reaching 52.23%, which indicates better cost management or operational efficiency despite the drop in sales. However, the overall financial health of Longspur remains concerning. The company's reliance on other income, as highlighted in previous reports, raises questions about the sustainability of its profit margins. Moreover, the average return on equity (ROE) remains extremely low at 0.34%, indicating inefficiencies in capital utilization. Additionally, the company has seen an adjustment in its evaluation, reflecting the ongoing challenges in its operational landscape. The absence of institutional interest and the significant volatility in its stock performance further complicate the investment outlook. In summary, Longspur International Ventures Ltd's recent results highlight a troubling trend of declining sales alongside a modest improvement in profitability, underpinned by operational inefficiencies and a lack of institutional confidence.