⚡ Flash Summary

Gharibwal Cement Limited (GCL) announced its financial results for the first quarter ended September 30, 2025. The company declared an interim cash dividend of 5% (Rs. 0.50 per share) for the financial year ending June 30, 2026. Net sales increased to Rs. 4,915.076 million from Rs. 4,317.394 million in the same quarter last year, but profit after taxation decreased to Rs. 277.582 million compared to Rs. 535.079 million. The share transfer books will remain closed from November 6-7, 2025.

📌 Key Takeaways

• 💰 Cash Dividend: Declared an interim cash dividend of Rs. 0.50 per share (5%) for FY ending June 30, 2026.
• 🗓️ Book Closure: Share transfer books will be closed from November 6-7, 2025.
• 📈 Net Sales Increase: Net sales increased to Rs. 4,915.076 million, a ~13.8% increase YoY.
• 📉 Profit Decline: Profit after taxation decreased to Rs. 277.582 million, a ~48% drop YoY.
• 💸 Earnings Per Share (EPS): EPS decreased to Rs. 0.69 from Rs. 1.34 YoY.
• 🧱 Gross Profit Decline: Gross profit decreased to Rs. 653.351 million from Rs. 1,172.834 million YoY.
• 🏢 Operating Expenses: General and administrative expenses decreased slightly, while selling and distribution expenses also saw a decrease.
• 🏦 Finance Income Increase: Finance income increased to Rs. 84.493 million from Rs. 75.145 million YoY.
• 🧾 Finance Expenses Decrease: Finance expenses decreased slightly to Rs. 34.659 million.
• 📊 Total Assets Increase: Total assets increased to Rs. 39,041.380 million from Rs. 38,680.762 million since June 30, 2025.
• 🏦 Cash Flow: Net cash inflow from operating activities significantly increased to Rs. 2,202.845 million from Rs. 361.906 million YoY.
• ⬇️ Investing Activities: Net cash outflow from investing activities increased to Rs. (599.014) million compared to Rs. (271.356) million YoY.
• 📉 Financing Activities: Net cash outflow from financing activities decreased slightly to Rs. (68.750) million.
• 🌱 Retained Earnings: Retained earnings increased to Rs. 14,368.269 million from Rs. 13,992.334 million since June 30, 2025.
• ⚠️ Borrowings: Non-current borrowings decreased slightly to Rs. 550 million, and current borrowings increased to Rs. 275 million.

🎯 Investment Thesis

HOLD. While the company shows revenue growth, the substantial decrease in profitability and EPS raises concerns. The interim dividend provides some support. Further monitoring of the company’s performance in subsequent quarters is needed to assess whether this decline is a temporary blip or a more sustained trend. A HOLD recommendation is appropriate until there is more clarity. Given the mixed performance, it’s crucial to assess the factors contributing to the decline in profitability before making a definitive investment decision.