⚡ Flash Summary

Premium Textile Mills Ltd. reports a mixed financial performance for the year ended June 30, 2025. While operating income decreased slightly, the company turned profitable with a profit after taxation of PKR 190.9 million compared to a loss of PKR 452.1 million in the previous year. The board recommends a final cash dividend of Rs 2.00 per share. The company focuses on sustainability and risk management.

📌 Key Takeaways

• ✅ Profit after tax turned positive: PKR 190.9 million vs PKR (452.1) million loss last year
• 📉 Operating Income slightly down: PKR 2,800.3 million vs PKR 2,842.3 million
• 💰 Dividend declared: Rs 2.00 per share (20%)
• 🌿 Focus on renewable energy: Solar and wind power initiatives
• 🤝 Partnership with WWF: Launching an organic cotton project
• ♻️ Emphasis on sustainable materials: Luna yarn, regenerated yarn, and tri-blend yarn
• 👩‍💼 Commits to gender equality: Hiring more women in leadership roles
• 🌍 Investment in Effluent Treatment Plant (ETP): For environment preservation
• ⚙️ Modernizing machinery every three years: To stay competitive
• 📊 Gross Margin declined to 13.37% from 14.12%
• 💵 High dependence on long term and short term finance
• ⚠️ Inflationary pressure on Fuel & Energy costs
• 🧶 Spinning & socks division performed well compared to previous periods
• ⚖️ Significant increase in Median Gender Pay Gap, needs reviewing

🎯 Investment Thesis

Given the mixed financial results, the current economic climate, and the various risks, a HOLD recommendation is appropriate. The turnaround in profitability is a positive sign, but the declining gross margin and increasing expenses warrant caution. A HOLD recommendation is given as further information is required. A price target is not provided due to uncertainties.