⚡ Flash Summary

Crescent Cotton Mills Limited (CCML) reported sales of Rs. 5,574 million for 2025, a decrease of 6.53% compared to Rs. 5,963 million in 2024. Despite the revenue decline, the company’s net profit increased by 19.79% to Rs. 60.710 million. Earnings per share (EPS) rose to Rs. 2.68 from Rs. 2.24. The company has disposed of spinning unit located at Lahore Multan Road, that impacted the sales but the net profit shows that cost-cutting measurements are effective.

📌 Key Takeaways

• Sales decreased by 6.53% from Rs. 5,962.592 million in 2024 to Rs. 5,573.501 million in 2025. 📉
• Gross profit decreased by 9.44% from Rs. 476.954 million to Rs. 431.921 million. 📉
• Profit from operations decreased by 27.13% from Rs. 222.296 million to Rs. 161.978 million. 📉
• Finance cost increased by 1.89% from Rs. 83.688 million to Rs. 85.272 million. 📈
• Profit after taxation increased by 19.79% from Rs. 50.679 million to Rs. 60.710 million. 📈
• Earnings per share (EPS) increased from Rs. 2.24 to Rs. 2.68. 📈
• Gross profit ratio decreased slightly from 8.00% to 7.75%. 📉
• Current ratio decreased significantly from 3.86 to 1.48. 📉
• The company disposed of its Spinning Unit at Lahore Multan Road. 🏭
• Textile exports grew by 7.59% in FY2025. 📈
• Company’s current ratio is 1.48 (2024: 3.86), shows less liquid assets. 💧
• The company has disposed of assets of complete spinning unit. 🏭
• The company’s financial leverage ratio is at 0.66, and was 0.59 in 2024. ⚖️

🎯 Investment Thesis

Based on the reported financials, a HOLD recommendation is appropriate. Although the company shows improved profitability, the decrease in sales and a high P/E ratio suggest a cautious approach. Further analysis of the textile sector and the company’s operational efficiencies is required. CCML will need to improve revenue and maintain profitability to sustain a positive outlook.