⚡ Flash Summary

Gul Ahmed Textile Mills Limited reported its financial results for the first quarter ended September 30, 2025. The company’s consolidated sales decreased slightly to PKR 48.78 billion from PKR 48.92 billion in the same period last year. Profit after taxation decreased to PKR 307.1 million from PKR 334.9 million. Earnings per share also declined to PKR 0.41 from PKR 0.45 year-over-year, indicating a less profitable quarter compared to the previous year.

📌 Key Takeaways

• 📉 Consolidated sales marginally decreased by 0.29% to PKR 48.78 billion in Q1 2025 from PKR 48.92 billion in Q1 2024.
• 😔 Cost of sales decreased by 1.89% to PKR 41.73 billion, compared to PKR 42.54 billion in the prior year.
• 📊 Gross profit increased by 10.4% to PKR 7.04 billion from PKR 6.38 billion.
• 💸 Selling and distribution costs decreased by 2.4% to PKR 2.74 billion.
• ⚙️ Administrative costs increased by 29.9% to PKR 2.09 billion.
• 📉 Other operating costs decreased by 7.1% to PKR 71.1 million.
• 📈 Other income significantly decreased by 59.9% to PKR 413.3 million.
• 📉 Finance costs decreased by 21.1% to PKR 1.76 billion.
• 📉 Profit before levies and income tax increased by 15.4% to PKR 799.8 million.
• 📉 Levies decreased by 16.5% to PKR 430.4 million.
• 📉 Profit before taxation increased significantly by 107.9% to PKR 369.4 million.
• 📉 Taxation shows a negative impact with an expense of PKR 62.3 million, compared to an income of PKR 157.2 million in the previous year.
• 📉 Profit after taxation decreased by 8.3% to PKR 307.1 million.
• 📉 Earnings per share (diluted) decreased to PKR 0.41 from PKR 0.45.
• 💰 No cash dividend, bonus shares, or right shares were recommended by the board.

🎯 Investment Thesis

HOLD. Given the marginal decrease in revenue, squeezed profit margins, and declining EPS, a HOLD recommendation seems appropriate. The company needs to address its increasing administrative costs and declining other income to improve profitability. Price Target: PKR 25 (based on current earnings multiple), Time Horizon: 12 months. This recommendation will be reviewed upon seeing consistent improvements in financial performance.