⚡ Flash Summary

Premium Textile Mills Limited (PRET) reported an operating income of PKR 2,800.3 million for the year ended June 30, 2025, a slight decrease from PKR 2,842.3 million in FY2024. Profit after taxation significantly improved to PKR 190.9 million compared to a loss of PKR 452.1 million in FY2024. The company declared a dividend of Rs 2 per share, a welcome return to shareholder distributions after no dividend in the previous year. The annual report highlights the company’s commitment to sustainability and renewable energy initiatives.

📌 Key Takeaways

• ✅ Operating income decreased slightly from PKR 2,842.3 million in FY2024 to PKR 2,800.3 million in FY2025.
• 📈 Profit after taxation turned positive at PKR 190.9 million, a substantial improvement from a loss of PKR 452.1 million in FY2024.
• 💰 A dividend of Rs 2 per share was declared, compared to no dividend in FY2024.
• 📉 Gross margin declined from 14.12% in FY2024 to 13.37% in FY2025.
• 📊 Operating profit margin decreased from 10.49% in FY2024 to 9.65% in FY2025.
• 💪 Total equity increased to PKR 8,748.3 million from PKR 8,515.1 million in FY2024.
• ✔️ Basic earnings per share improved to PKR 30.98 from a loss of PKR 73.36 in FY2024.
• ☢️ Total assets decreased slightly to PKR 29,464.1 million from PKR 30,539.8 million in FY2024.
• 🌱 Renewable energy initiatives are underway, with solar capacity increasing to 19.8 MW and plans for wind turbines.
• 🌍 Partnership with WWF Pakistan for organic cotton project is ongoing, covering 8,000 acres.
• ♻️ Focus on sustainable materials with recycled yarn and Luna yarn.
• ⚖️ Diversity and inclusion emphasized with various programs and gender pay gap reported.

🎯 Investment Thesis

Premium Textile Mills exhibits mixed signals. Improved profitability and a return to dividends are positive, but a slight decline in revenues and margins warrants caution. The company’s sustainability initiatives and strategic energy shifts are encouraging for long-term value. As the company has made an announcement for the next general meeting, and to give a chance for market to take positions I suggest a Hold.