⚡ Flash Summary

AN Textile Mills Limited reported an increase in revenue for the first quarter ended September 30, 2025, compared to the same period last year. Despite the revenue growth, the company still incurred a loss after taxation, although the loss was significantly reduced compared to the previous year. The Directors express cautious optimism about the future outlook of Pakistan’s spinning industry, citing gradual recovery in domestic and global textile demand. Management remains focused on increasing market share and reducing operating costs to improve profitability.

📌 Key Takeaways

• ⬆️ Revenue increased to Rupees 1,281.923 million in Q1 2025 from Rupees 1,043.184 million in Q1 2024.
• 📉 Loss after taxation decreased to Rupees 23.789 million in Q1 2025 from Rupees 64.500 million in Q1 2024.
• ⚠️ Cost of sales increased to Rupees 1,239.827 million in Q1 2025 from Rupees 1,056.435 million in Q1 2024.
• 💰 Gross profit improved to Rupees 42.096 million in Q1 2025 from a loss of Rupees 13.251 million in Q1 2024.
• 💸 Administrative expenses increased to Rupees 25.642 million in Q1 2025 from Rupees 17.222 million in Q1 2024.
• 🏦 Finance costs decreased to Rupees 10.526 million in Q1 2025 from Rupees 11.377 million in Q1 2024.
• 🧾 Loss per share improved to (Rupees 2.46) in Q1 2025 from (Rupees 6.68) in Q1 2024.
• 🌱 Company notes cautious optimism for Pakistan’s spinning industry, supported by demand recovery.
• 💡 Management focuses on modernization, energy-efficient machinery, and productivity enhancements.
• 🌍 Sustainability and innovation are highlighted as key for future growth in the textile industry.
• 🛡️ Company faces challenges like high energy tariffs and stiff regional competition.
• 🏦 The company relies on interest-free loans from directors and bank borrowings to meet liquidity needs.
• ✅ The Board acknowledges the cooperation of customers, suppliers, bankers, and employees.

🎯 Investment Thesis

HOLD. While revenue has increased and losses have decreased, the company is still loss-making. The industry faces significant challenges, and a more stable financial performance is needed before considering a buy. The outlook is cautiously optimistic but needs to be supported by concrete improvements in profitability.