⚡ Flash Summary

Gharibwal Cement Limited (GWLC) reported a 14% increase in net sales revenue, reaching Rs. 4.915 billion for the quarter ended September 30, 2025, driven by a 23% increase in cement dispatches. However, the retention price declined by 8%, partially offsetting the volume gains. Gross profitability declined by 44% due to planned kiln shutdowns and under-absorption of overheads. Net profit after tax decreased to Rs. 277 million, with earnings per share at Rs. 0.69.

📌 Key Takeaways

• Cement dispatches increased by 23% year-on-year to 317,363 tons. 🚚
• Net sales revenue increased by 14% to Rs. 4.915 billion. 💰
• Retention price declined by 8%, impacting revenue growth. 📉
• Gross profitability decreased by 44% due to kiln shutdowns. 🏭
• EBITDA reached Rs. 716 million. 💪
• Net profit after tax stood at Rs. 277 million. 💸
• Earnings per share (EPS) were Rs. 0.69. 🧾
• Current ratio is 2.48, indicating strong liquidity. 💧
• Successful transition to Microsoft Dynamics 365 ERP system. 💻
• Kiln remained under planned shutdown due to clinker inventory. ⚙️
• Company maintains commitment to operational excellence and cost leadership. 🥇
• Board confident in delivering sustainable growth and improved profitability. 🌱
• Interim dividend of 5% (PKR 0.50 per share) approved. 🎁
• Finance income increased from 75.145 million to 84.493 million. 📈

🎯 Investment Thesis

HOLD. While the company has demonstrated revenue growth, the significant decline in profitability and EPS raises concerns. The successful ERP implementation is a positive sign, but it’s not enough to outweigh the negative financial performance. A price target requires further analysis and sector comparison. Monitor future quarters for improved profitability.