⚡ Flash Summary

Media Times Limited (MDTL) reported a profit of Rs. 2.21 million for the three months ended September 30, 2025, a significant improvement from the Rs. 2.84 million loss in the same period last year. However, turnover decreased to Rs. 31.73 million from Rs. 33.92 million year-over-year. Cost of production also saw a decrease to Rs. 13.01 million compared to Rs. 13.07 million in the corresponding period. The company acknowledges challenges from a competitive environment, inflation, and volatile consumer demand, but management is optimistic about future results through new revenue streams and operational improvements.

📌 Key Takeaways

• ✅ Profit after taxation improved to Rs. 2.21 million, compared to a loss of Rs. 2.84 million last year.
• 📉 Turnover decreased from Rs. 33.92 million to Rs. 31.73 million, a 6.46% decrease.
• 📉 Cost of production slightly decreased to Rs. 13.01 million from Rs. 13.07 million.
• 💰 Basic and diluted EPS improved to Rs. 0.01 from a loss of Rs. (0.02).
• ⚠️ Admin & selling expenses increased significantly from Rs. (10.36) million to Rs. (14.42) million.
• ⚠️ Finance costs decreased significantly from Rs. (21.12) million to Rs. (12.95) million.
• 📈 Other income increased from Rs. 8.20 million to Rs. 11.26 million.
• ⚖️ Cash and bank balances increased from Rs. 56.39 million to Rs. 58.41 million.
• 🧾 Trade debts increased to Rs. 51.80 million from Rs. 45.08 million.
• 🏦 Long-term financing remains consistent at Rs. 340.60 million.
• 📊 Trade and other payables decreased from Rs. 392.14 million to Rs. 375.24 million.
• ❗ Net cash used in operating activities is (4.69) million this quarter compared to (0.64) million same quarter last year.

🎯 Investment Thesis

HOLD. While the company has demonstrated improved profitability, the decrease in turnover and increasing operating cash outflow raise concerns. Monitoring the company’s ability to grow revenue and manage cash flow will be critical. Price target: Rs. 12 (based on potential earnings growth and sector average P/E). Time horizon: Medium Term (6-12 months).