⚡ Flash Summary
Crescent Textile Mills Limited (CRTM) reported results for the first quarter ended September 30, 2025. The company experienced revenue growth primarily due to a change in strategy focused on attracting value-added business with better margins. The loss after tax significantly decreased due to improved gross margins and reduced finance costs. Despite prevailing challenges like depressed demand and high energy costs, the company is optimistic about future sustainability and growth through new customers, markets, and investments in green energy.
📌 Key Takeaways
- 📈 Revenue increased by 21% to PKR 4,840 million in Q1 2026 from PKR 3,991 million in Q1 2025.
- 💰 Cost of sales increased by 22% to PKR 4,249 million in Q1 2026.
- ✅ Gross profit increased by 14% to PKR 591 million in Q1 2026.
- 🚚 Distribution costs increased by 25% to PKR 231 million.
- 🏢 Administrative expenses increased by 14% to PKR 137 million.
- 📉 Finance cost decreased by 43% to PKR 215 million.
- ✅ Loss after tax significantly decreased by 85% to PKR 26 million.
- ⚠️ Depressed demand and pressure on sales prices remain significant challenges.
- 🌱 The company is focused on tapping into new customers and markets.
- 🔋 Investments in green energy are underway to reduce energy costs.
- 🤝 The Board acknowledged the management’s hard work and the contributions of all stakeholders.
- 📊 Basic and diluted loss per share improved to (0.26) rupees compared to (1.66) rupees in the same quarter last year.
- 💵 Cash generated from operations decreased from 368.169 million to 19.168 million, signaling a worrying trend
🎯 Investment Thesis
HOLD. While the company has shown improvement in revenue and reduced losses, persistent challenges and a negative EPS necessitate a cautious approach. A ‘Hold’ rating is justified until sustained profitability is demonstrated, and the effectiveness of cost optimization and green energy initiatives is confirmed. There is uncertainty that must be resolved before recommending a buy.
Disclaimer: AI-generated analysis. Not financial advice.