⚡ Flash Summary

Pakistan Synthetics Limited (PSYL) reported a 22.27% increase in sales revenue for the financial year 2025, driven by higher sales volumes. Net profit after tax increased to Rs. 367.452 million, compared to Rs. 347.766 million in 2024. However, the Board of Directors did not recommend any cash dividend to meet the company’s long term commitments. The company faces risks including adverse movements in foreign exchange rates, commodity prices, and industrial utilities pricing. The future outlook is cautiously optimistic despite challenges from recent monsoon rains and flooding.

📌 Key Takeaways

• ✅ Revenue increased by 22.27% year-over-year.
• 📈 Net profit after tax grew to Rs. 367.452 million from Rs. 347.766 million.
• 🚫 No cash dividend was recommended for the year ended June 30, 2025.
• ⛽️ Cost of sales increased by 27% due to a rise in gas prices.
• 💸 The company’s investment in an associate reported a loss of Rs. 204.548 million.
• 💲 Basic earnings per share (EPS) increased to Rs. 2.65 from Rs. 2.51.
• 💹 Administrative expenses increased due to enhanced CSR activities.
• Exchange loss of Rs. 52 million compared to an exchange gain of Rs. 7.4 million last year.
• 📉 Finance costs decreased due to a downward trend in interest rates.
• ⚠️ Key risks include adverse movements in foreign exchange rates and commodity prices.
• ☀️ Proactively investing in renewable energy solutions including solar power.
• 🌊 Sales volumes in the upcoming period may be negatively impacted by monsoon rains and flooding.

🎯 Investment Thesis

Given that PSYL has improving profitability and top line growth with no plans for capital expenditure at this time, HOLD. The external Pakistani environment, as well as the lack of a proposed dividend, limit the upside.