Are Supreme Holdings latest results good or bad?

Supreme Holdings & Hospitality has reported its financial results for the quarter ending March 2025, which highlight several concerning operational trends. The company has experienced a significant decline in key financial metrics, with net sales showing a year-on-year decrease of 41.78%, totaling Rs 19.84 crore. This decline is accompanied by a notable drop in profit before tax (PBT) to Rs -2.83 crore, reflecting a substantial negative shift compared to the previous year. Similarly, profit after tax (PAT) has also declined to Rs -1.69 crore, indicating challenges in maintaining profitability.
The operating profit has reached its lowest point in five quarters at Rs -2.71 crore, with an operating profit margin of 0.00%, suggesting difficulties in managing operational costs effectively. Furthermore, the earnings per share (EPS) have fallen to Rs -0.44, which may impact shareholder sentiment.

On a more positive note, Supreme Holdings has recorded its highest cash and cash equivalents in the last six half-yearly periods, amounting to Rs 5.55 crore, indicating an improvement in short-term liquidity. However, the overall financial performance reflects a negative trend, leading to an adjustment in the company's evaluation over the past three months. Additionally, the debtors turnover ratio has decreased to 2.54 times, suggesting a slowdown in the company's ability to settle its debts efficiently.

In summary, while there are some positive liquidity indicators, the overall financial results for Supreme Holdings indicate significant operational challenges that need to be addressed.