⚡ Flash Summary

HUSI’s financial results for the quarter ended September 2025 show a mixed performance. Revenue increased to Rs 51.01 million from Rs 47.23 million in the same quarter last year. However, accumulated losses remain substantial at Rs (962.67) million. The company reported a profit after tax of Rs 19.79 million, a significant improvement from the Rs 12.38 million profit in the prior year.

📌 Key Takeaways

• 📈 Revenue increased by 8.01% YoY, reaching Rs 51.01 million.
• 💰 Gross profit improved to Rs 38.95 million from Rs 36.91 million YoY.
• Operating profit increased by 4.61% to Rs 26.29 million.
• 📉 Finance costs decreased significantly from Rs (13.82) million to Rs (7.90) million YoY.
• ✅ Profit before income tax stood at Rs 18.58 million, a substantial increase from Rs 11.73 million YoY.
• 🧾 Earnings per share (EPS) increased to Rs 1.86 from Rs 1.17 YoY.
• ⚠️ Accumulated losses remain high at Rs (962.67) million.
• ✔️ Cash and bank balances increased to Rs 30.09 million from Rs 19.07 million at the beginning of the quarter.
• 🏦 Short term borrowings remain stable at Rs 272.44 million.
• 🧾 Trade and other payables decreased slightly to Rs 180.32 million from Rs 184.18 million.
• Taxation increased from 651,745 to 1,214,901.
• Shareholder equity improved from -48.1 million to -28.3 million.

🎯 Investment Thesis

HOLD. While the company shows improved performance in revenue and profitability, the accumulated losses and negative shareholder equity present significant risks. A more comprehensive turnaround strategy and consistent profitability are needed before considering a ‘BUY’ rating. A continued hold is warranted to assess the consistency of the recent financial improvements.