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

📌 Key Takeaways

• 📈 Net sales increased to PKR 2,605.14 million, up from PKR 1,887.39 million year-over-year.
• 📊 Gross profit rose to PKR 275.40 million, compared to PKR 217.98 million in the previous year.
• 📉 Selling and distribution expenses increased to PKR 117.42 million from PKR 102.80 million year-over-year.
• 🏢 Administrative expenses decreased to PKR 72.48 million from PKR 90.87 million year-over-year.
• 💼 Operating profit increased significantly to PKR 85.49 million, compared to PKR 24.31 million in the same quarter last year.
• 💰 Finance costs decreased to PKR 26.11 million from PKR 41.64 million year-over-year.
• 📉 Other operating expenses increased to PKR 4.98 million from PKR 0.47 million year-over-year.
• 💸 Other income increased to PKR 2.30 million from PKR 18.67 million year-over-year.
• ✅ Profit before income tax increased to PKR 56.70 million from PKR 0.87 million year-over-year.
• 🧾 Income tax expense increased to PKR 33.28 million from PKR 23.61 million year-over-year.
• ✅ Net profit for the year is PKR 23.42 million, compared to a loss of PKR 22.74 million year-over-year.
• 📉 Loss / Earnings per share (basic and diluted) is PKR 3.02, compared to PKR -2.93 year-over-year.
• ❌ No cash dividend, bonus shares, or right shares were declared.
• 🌱 Total Equity increased to PKR 2,600.58 million as of September 30, 2025, from PKR 2,577.16 million as of June 30, 2025.
• 🏦 Cash and bank balances decreased to PKR 46.52 million from PKR 100.50 million from June 30, 2025.

🎯 Investment Thesis

HOLD. While the turnaround from a loss to a profit and substantial revenue growth are positive signs, the decreased cash balance and increased selling and distribution expenses raise concerns. A HOLD recommendation is appropriate until further quarters confirm sustainable profitability and efficient cash management. Price target will be re-evaluated after the next quarter’s results.