⚡ Flash Summary
Faisal Spinning Mills Limited reported a loss after taxation of PKR (92.175) million for the quarter ended September 30, 2025, compared to a loss of PKR (406.932) million in the same period last year. Sales decreased slightly from PKR 12.157 billion to PKR 11.950 billion. The company experienced a reduction in finance costs but faced losses from associated undertakings. Overall, the financial performance indicates a challenging quarter with reduced losses compared to the previous year.
📌 Key Takeaways
- 📉 Loss after taxation reduced to PKR (92.175) million from PKR (406.932) million year-over-year.
- 📉 Sales slightly decreased to PKR 11.950 billion from PKR 12.157 billion year-over-year.
- ✅ Gross profit increased significantly to PKR 1.030 billion from PKR 621.411 million year-over-year.
- ⚠️ Finance costs decreased to PKR (457.532) million from PKR (342.314) million year-over-year.
- ❌ Share of loss from associated undertaking increased to PKR (8.941) million from PKR (35.687) million year-over-year.
- ⚠️ Loss before levies & taxation improved but still negative at PKR (93.517) million compared to PKR (412.285) million year-over-year.
- ✅ Trade and other payables increased significantly to PKR 6.793 billion from PKR 4.899 billion.
- ⚠️ Short term borrowings decreased to PKR 13.662 billion from PKR 16.171 billion.
- ✅ Cash generated from operations increased to PKR 4.026 billion from PKR 792.899 million.
- ⚠️ Net cash used in financing activities amounted to PKR (2.699) billion.
- ✅ Basic and diluted loss per share improved to (PKR 9.22) from (PKR 40.69).
- ✅ Property, plant, and equipment increased to PKR 12.129 billion from PKR 11.828 billion.
🎯 Investment Thesis
HOLD recommendation. The company is still loss-making, but the reduced loss compared to the previous year and improved gross profit margin are positive signs. A more positive view requires consistent profitability and improved financial stability. Price target is maintained at the current level until clearer signs of sustained recovery emerge. Time horizon: Medium Term
Disclaimer: AI-generated analysis. Not financial advice.