⏸️ FTMM: HOLD Signal (6/10) – Financial Results for the Quarter Ended September 30, 2025

📌 Key Takeaways

• 📈 Revenue increased to PKR 1,097.448 million from PKR 1,003.618 million in the same quarter last year.
• 💰 Gross profit increased to PKR 113.628 million from PKR 101.267 million year-over-year.
• 📊 Operating profit increased significantly to PKR 65.845 million from PKR 25.468 million.
• 💸 Profit before levies and income tax increased substantially to PKR 83.118 million from PKR 22.070 million.
• ✅ Profit after tax increased significantly to PKR 68.213 million from PKR 18.600 million.
• ✔️ Earnings per share (EPS) increased to PKR 0.349 from a restated PKR 0.095.
• ❌ The company declared NIL for cash dividend, bonus shares, and right shares.
• 🏦 Cash and bank balances decreased from PKR 469.382 million in June 2025 to PKR 147.640 million in September 2025.
• 📉 Net cash outflow from operating activities was PKR (307.007) million compared to an inflow of PKR 156.496 million in the previous year.
• 🧾 Trade debts increased from PKR 366.098 million in June 2025 to PKR 409.218 million in September 2025.
• 📜 Loans, advances, deposits, prepayments, and other receivables increased from PKR 802.379 million to PKR 1,068.462 million.
• liabilities increased from PKR 638.691 million to PKR 902.758 million
• Property, plant, and equipment increased from PKR 260.370 million to PKR 268.421 million.

🎯 Investment Thesis

Based on the improved profitability metrics, a HOLD recommendation is appropriate. While revenue and profits have increased substantially, the negative operating cash flow warrants caution. Price target and time horizon will depend on further analysis of the cash flow situation and sector-specific factors. I recommend a HOLD rating with a 6 month timeframe to reassess the situation if operational cashflow improves.