Supreme Holdings Reports Positive Q2 Results, Shows Growth in Key Areas

Supreme Holdings & Hospitality, a microcap company in the construction and real estate industry, has recently announced its financial results for the quarter ending September 2024. The company's stock has been given a 'Hold' call by MarketsMOJO.

According to the financial report, Supreme Holdings has shown positive performance in the second quarter of the fiscal year 2024-2025. The company's score has improved from 13 to 16 in the last three months.

One of the key factors contributing to this positive performance is the growth in Profit Before Tax (PBT) less Other Income, which has increased by 102.35% year on year. The company's net sales have also shown a growth of 23.28% year on year in the first half of the fiscal year. Additionally, Supreme Holdings has been able to sell its inventory at a faster rate, with the Inventory Turnover Ratio being the highest at 3.57 times in the last five half yearly periods.

The company's Profit After Tax (PAT) has also shown a positive trend, with the latest quarter recording the highest PAT of Rs 4.10 crore in the last five quarters. The PAT has also grown by 38.0% year on year, indicating a positive near term trend.

However, there are some areas where Supreme Holdings needs to improve. The company's Operating Cash Flow has been consistently falling in the last three years, with the latest annual figure being the lowest at Rs -36.38 crore. The Debtors Turnover Ratio has also decreased in the last five half yearly periods, indicating a slower pace of settling debts.

Overall, Supreme Holdings has shown a positive financial performance in the recent quarter, with a strong growth in key areas. However, the company needs to address its falling cash flow and debt settlement pace to maintain its positive trend.