⚡ Flash Summary

Ahmad Hassan Textile Mills Limited (AHTM) reported its financial results for the quarter ended September 30, 2025. The company’s revenue decreased by 22.87% compared to the same period last year, while profit after taxation increased significantly by 146.73%. Earnings per share (EPS) also rose from 1.01 to 2.49. Despite the revenue decline, improved profitability suggests better cost management or operational efficiencies.

📌 Key Takeaways

• 📉 Revenue from contracts with customers decreased by 22.87% from PKR 1,544.13 million to PKR 1,190.95 million.
• ⬆️ Gross profit decreased by 11.58% from PKR 101.15 million to PKR 89.44 million.
• 📉 Finance costs significantly decreased by 55.77% from PKR 49.66 million to PKR 21.97 million.
• ⬆️ Profit before revenue and income taxation increased by 26.83% from PKR 27.78 million to PKR 35.23 million.
• ⬆️ Profit after taxation surged by 146.73% from PKR 8.54 million to PKR 21.06 million.
• ⬆️ Earnings per share (EPS) increased significantly from PKR 1.01 to PKR 2.49.
• ⚠️ No cash dividend, bonus shares, or right shares were declared for the quarter.
• ⬇️ Cash and cash equivalents decreased to PKR 1.57 million from PKR 22.54 million at the beginning of the period.
• ⚠️ Net cash used in operating activities was PKR 189.21 million compared to cash generated of PKR 83.38 million in the prior year.
• ⬆️ Total assets increased slightly from PKR 4,455.89 million to PKR 4,505.27 million.
• ⬇️ Total equity increased from PKR 2,392.71 million to PKR 2,413.77 million.

🎯 Investment Thesis

Given the mixed performance with declining revenues but increasing profitability, I recommend a HOLD position on AHTM. The improved EPS is a positive sign, but the revenue decline and cash flow issues warrant caution. A price target of PKR 30, assuming a conservative P/E ratio of 12x, seems reasonable. The time horizon for this recommendation is medium-term (6-12 months) pending further improvement in revenue generation.