⚡ Flash Summary

Jubilee Spinning & Weaving Mills Limited reported a loss of Rs. 2.80 million for the quarter ended September 30, 2025, contrasting with a profit of Rs. 1.69 million in the same period last year. Revenue decreased slightly by Rs. 0.24 million, while administrative expenses and other income both increased. The loss after tax was Rs. 2.83 million. Management is optimistic about improving results in the remaining quarters, despite challenges from changes in taxation regulations.

📌 Key Takeaways

• 📉 Jubilee Spinning & Weaving Mills reported a loss of Rs. 2.80 million for the quarter ended September 30, 2025, compared to a profit of Rs. 1.69 million in the same quarter last year.
• Revenue decreased slightly by Rs. 0.24 million from Rs. 3,506,804 to Rs. 3,267,387.
• Cost of revenue decreased from Rs. 2,005,089 to Rs. 1,641,153.
• ⚠️ Gross profit turned into a loss of Rs. 1,626,234 compared to a gross profit of Rs. 1,501,715.
• 💸 Administrative and other operating expenses increased from Rs. 18,759,033 to Rs. 20,831,688.
• 💰 Other income increased from Rs. 19,306,327 to Rs. 20,785,458.
• 💸 Financial charges decreased from Rs. 3,911 to Rs. 1,990.
• 🧾 Provision for taxation significantly increased from Rs. 347,667 to Rs. 4,406,323.
• 📉 Basic earnings per share decreased from Rs. 0.05 to a loss per share of Rs. (0.09).
• ⚠️ Tax regulations now disallow setting off business losses with income from property, impacting profitability.
• Optimism expressed by management that the company will improve results in the remaining quarters of the financial year.
• ⚠️ Equity Investment decreased slightly from Rs. 2,916,016 to Rs. 2,886,657.

🎯 Investment Thesis

Given the current financial results showing a loss and increased tax provisions, a SELL recommendation is warranted. The regulatory changes impacting tax liabilities present a significant challenge. A target price cannot be determined without further due diligence. Time horizon is SHORT_TERM.