⚡ Flash Summary

Paramount Spinning Mills Limited reported a loss of PKR 1.833 million for the quarter ended September 30, 2025, compared to a profit of PKR 212,910 in the same period last year. The company’s operations have been realigned following the implementation of a scheme of arrangement under which all assets were sold. The Board remains focused on delivering commercial trading and other services to sustain the business. There were no sales or cost of sales during the period.

📌 Key Takeaways

• 📉 Loss after taxation stood at PKR 1.833 million for Q1 2025, a stark contrast to the PKR 212,910 profit in Q1 2024.
• 🚫 Zero sales reported for the quarter ended September 30, 2025, indicating a significant operational change.
• 🏢 Administrative expenses were PKR 1.843 million, a significant increase from PKR 295,361 in the prior year.
• 🏦 Finance costs decreased to PKR 1,021 from PKR 1,972 year over year.
• 💸 Cash used in operating activities amounted to PKR 2.223 million compared to cash generated of PKR 3.687 million in Q1 2024.
• 💼 A scheme of arrangement has been implemented, involving the sale of company assets by an asset sale committee.
• 🔄 Operations have been realigned to focus on commercial trading and other services.
• 📉 Accumulated loss increased from PKR 1.374 billion as of June 30, 2025 to PKR 1.376 billion as of September 30, 2025.
• 💰 Cash and bank balances decreased from PKR 8.382 million to PKR 4.508 million.
• liabilities including loans from associates and other parties have decreased to PKR 578.545 million from PKR 580.195 million QoQ.
• 👍 The board acknowledges the efforts and commitment of its employees during this tough time.

🎯 Investment Thesis

Given the current financial performance and ongoing realignment, a SELL recommendation is warranted. The company’s transition phase is fraught with risks, and there is no clear evidence of a successful turnaround. Investors should avoid the stock until there is greater clarity on the company’s ability to generate sustainable revenue and profit from its realigned operations.