Are Lykis latest results good or bad?

Lykis has reported its financial results for the quarter ending March 2025, revealing significant challenges in its operational performance. The net sales for this quarter were recorded at Rs 61.44 crore, which represents a notable decline of 31.0% compared to the average net sales of Rs 89.05 crore over the previous four quarters. This figure marks the lowest sales recorded by Lykis in the last five quarters, indicating a concerning trend in sales performance.
In terms of profitability, Lykis reported a profit after tax (PAT) of Rs -0.69 crore, reflecting a drastic decline of 183.6% from the average PAT of Rs 0.83 crore in the prior four quarters. This negative trend in PAT highlights the ongoing difficulties faced by the company.

Additionally, the reliance on non-operating income, which constituted a substantial 3,275.00% of profit before tax (PBT), raises questions about the sustainability of Lykis's financial model. The highest non-operating income recorded in the last five quarters was Rs 1.31 crore, further emphasizing the company's dependence on non-business activities.

The quarterly results also show a QoQ decline in net sales of 22.41% compared to the previous quarter, alongside a significant drop in consolidated net profit by 144.52%. The operating profit margin, excluding other income, also experienced a decline, indicating challenges in maintaining profitability from core operations.

Overall, Lykis's financial results for the quarter demonstrate a negative operational trend, leading to an adjustment in its evaluation.