⚡ Flash Summary

Sally Textile Mills Limited reported a net loss of PKR 8.447 million for the quarter ended September 30, 2025, compared to a loss of PKR 8.783 million in the same quarter last year. The company’s operating loss also decreased slightly from PKR 8.783 million to PKR 8.447 million. There were no cash dividends, bonus shares, or right shares declared for the period. The company’s accumulated loss increased to PKR 1,651.730 million, impacting its overall equity.

📌 Key Takeaways

• 📉 Net loss decreased slightly to PKR 8.447 million in Q1 2025 from PKR 8.783 million in Q1 2024.
• ⚠️ Loss per share remained almost the same at (0.96) in Q1 2025 compared to (1.00) in Q1 2024.
• 🚫 No cash dividend was declared for the quarter ended September 30, 2025.
• ❌ No bonus shares were announced for the period.
• ❌ No right shares were issued during the quarter.
• ➡️ Turnover (net) and Cost of sales were (PKR 7,212) in Q1 2025 vs (PKR 7,567) in Q1 2024.
• ➡️ Operating loss decreased slightly to PKR (8.447) million from PKR (8.783) million.
• ➡️ Loss before taxation stood at PKR (8.447) million, a minor decrease from PKR (8.783) million year-over-year.
• ➡️ Total Assets decreased from PKR 1,467.052 million to PKR 1,460.013 million.
• ➡️ Accumulated loss increased from PKR (1,643.283) million to PKR (1,651.730) million.
• ➡️ Cash and bank balances remained constant at PKR 2.629 million.

🎯 Investment Thesis

Given the continuing losses, negative equity, and challenging financial position, a HOLD recommendation is appropriate. A turnaround is not yet evident, and significant improvements in profitability and operations are needed. Without a demonstrated path to profitability, a BUY recommendation is not warranted. A SELL recommendation could be considered should operations further worsen. Investors should closely monitor the company’s financial performance and operational improvements.