⚡ Flash Summary

Faisal Spinning Mills Limited reported a loss after taxation of PKR (92.175) million for the three months ended September 30, 2025, compared to a loss of PKR (406.932) million for the same period last year. Sales decreased slightly from PKR 12,156.778 million to PKR 11,949.723 million. Gross profit increased significantly to PKR 1,030.413 million from PKR 621.411 million. The loss per share improved to (9.22) from (40.69) year-over-year, indicating some operational improvements.

📌 Key Takeaways

• 📉 Loss after taxation improved significantly: PKR (92.175) million vs PKR (406.932) million YoY.
• Sales decreased marginally: PKR 11,949.723 million vs PKR 12,156.778 million YoY, a decrease of approximately 1.7%.
• 📈 Gross profit increased substantially: PKR 1,030.413 million vs PKR 621.411 million YoY, showing a 65.8% increase.
• Distribution costs decreased: PKR (388.942) million vs PKR (413.961) million YoY.
• Administrative expenses increased: PKR (153.009) million vs PKR (140.491) million YoY.
• Other income decreased: PKR 25.118 million vs PKR 41.819 million YoY.
• Finance costs increased significantly: PKR (457.532) million vs PKR (342.314) million YoY.
• Share of loss from associated undertaking improved: PKR (8.941) million vs PKR (35.687) million YoY.
• Levies on revenue taxes decreased: PKR (137.948) million vs PKR (143.062) million YoY.
• Loss per share improved significantly: (9.22) vs (40.69) YoY.
• Operating cash flows before working capital changes increased: PKR 825.112 million vs PKR 384.153 million YoY.
• Net cash generated from operating activities increased significantly: PKR 3,325.905 million vs PKR 231.664 million YoY.
• Net cash used in investing activities decreased: PKR (570.566) million vs PKR (279.052) million YoY.
• Net cash used in financing activities decreased: PKR (2,698.522) million vs PKR (55.296) million YoY.
• Cash and cash equivalents at the end of the period decreased slightly: PKR 405.839 million vs PKR 472.728 million YoY.

🎯 Investment Thesis

HOLD. While the company has shown significant improvement in profitability and cash flow, the slight decrease in revenue and increase in finance costs raise concerns. A ‘Hold’ recommendation is appropriate until the company demonstrates sustained revenue growth and better cost control. Further analysis is needed to establish a price target. Time horizon: Medium-term (6-12 months).