⚡ Flash Summary

Wah Nobel Chemicals Limited (WAHN) reported its annual results for the year ended June 30, 2025. The company achieved a 9% increase in net sales, reaching Rs. 5.096 billion, but profitability was negatively impacted by rising input costs and intense market competition. As a result, after-tax profit decreased to Rs. 482 million compared to Rs. 549 million in the previous year. The Board has recommended a final cash dividend of Rs 10 per share, equivalent to 100%.

📌 Key Takeaways

• 📈 Revenue Growth: Net sales increased by 9% to Rs. 5.096 billion.
• 📉 Profit Decline: After-tax profit decreased by 12% to Rs. 482 million.
• 💰 Dividend: Final cash dividend of Rs. 10 per share (100%) recommended.
• ⚠️ Cost Pressures: Increased input costs affected profitability.
• Competition: Intense competition limited the ability to pass on costs to customers.
• ⚙️ Expense Increase: Administrative and general expenses increased by 6%, selling and distribution by 16%.
• 📉 EPS Decline: Earnings per Share decreased from Rs. 61.05 to Rs. 53.55.
• 💸 National Exchequer Contribution: Company contributed Rs. 1.451 billion to the national exchequer.
• 🌱 New UFMC Plant: Newly installed Urea Formaldehyde Moulding Compound (UFMC) plant is operational.
• 🤔 Cautious Optimism: Outlook for FY 2025-26 remains cautiously optimistic amidst economic stabilization.
• 🏢 Board Composition: Board includes representation of non-executive and independent directors.
• 🌐 Corporate Governance: The company is committed to good corporate governance and is compliant with listed companies regulations.

🎯 Investment Thesis

HOLD: The company demonstrates revenue growth but has profitability challenges, and is located in a country with several economic and political risks. Further analysis with updated results will be necessary to upgrade the rating.