⚡ Flash Summary

Prosperity Weaving Mills Ltd. reported its financial results for the quarter ended September 30, 2025. The company’s revenue decreased from PKR 5.114 billion to PKR 4.682 billion. Despite the revenue dip, the company managed to post a profit after taxation of PKR 46.18 million, a notable increase from PKR 20.23 million in the same quarter last year. Earnings per share (EPS) also improved significantly, rising from PKR 1.09 to PKR 2.50.

📌 Key Takeaways

• 📉 Revenue decreased to PKR 4.682 billion from PKR 5.114 billion year-over-year.
• ✅ Profit after taxation increased to PKR 46.18 million from PKR 20.23 million year-over-year.
• 🚀 Earnings per share (EPS) increased to PKR 2.50 from PKR 1.09 year-over-year.
• 💰 Gross profit decreased to PKR 316.42 million from PKR 338.04 million year-over-year.
• 🚧 Finance costs decreased to PKR 44.27 million from PKR 85.70 million year-over-year.
• 👍 Total comprehensive income for the period increased to PKR 101.79 million from PKR 19.02 million year-over-year.
• 🧾 Administrative expenses slightly increased to PKR 42.61 million from PKR 41.93 million year-over-year.
• 🏦 Total equity increased to PKR 2.516 billion from PKR 2.414 billion from June 30, 2025.
• 💸 Cash and bank balances significantly increased to PKR 707.51 million from PKR 224.64 million from June 30, 2025.
• ⚠️ Short term borrowings decreased slightly to PKR 1.095 billion from PKR 1.101 billion from June 30, 2025.
• 💼 Trade receivables increased to PKR 1.210 billion from PKR 1.073 billion from June 30, 2025.
• 🌱 Net cash generated from operating activities was PKR 660.38 million compared to outflow of PKR 11.99 million year-over-year.
• Investments in equity instruments designated at FVTOCI saw a fair value gain of PKR 55.61 million.
• Final dividend was paid for the year ended June 30, 2024, at Rs. 2.5 per ordinary share.

🎯 Investment Thesis

HOLD. While the company has shown improvements in profitability and EPS, the decline in revenue is concerning. The increased cash position and improved operating cash flow are positive signs, but more consistent revenue growth is needed to justify a BUY recommendation. A HOLD recommendation is appropriate until the company demonstrates sustained revenue growth and can maintain its profitability improvements. Further observation is needed to evaluate the company’s long-term trajectory.