⚡ Flash Summary
SMCPL (Safemix Concrete Limited) has shown mixed financial performance for the fiscal year 2024-2025. While revenue increased by 31% to PKR 1,652 million, profitability metrics such as gross profit and net profit declined by -1% and -10%, respectively. The EPS also decreased from PKR 4.57 to PKR 4.11. Despite increased sales, cost management challenges appear to have impacted overall profitability.
📌 Key Takeaways
- 📈 Revenue increased significantly by 31%, reaching PKR 1,652 million in FY 2024-2025.
- 📉 Gross profit decreased slightly by -1% to PKR 256.35 million.
- ⚠️ GP Ratio declined from 21% to 16%, indicating reduced efficiency.
- ⬆️ Administrative expenses increased by 27% to PKR 57.67 million.
- ⬆️ Selling and distribution expenses surged by 51% to PKR 9.31 million.
- 📉 Operating profit decreased by -9% to PKR 189.37 million.
- ⚠️ Operating Profit Ratio decreased from 17% to 11%.
- ⬇️ Other expenses decreased by -39% to PKR 6.48 million.
- ⬇️ Other income decreased by -26% to PKR 6.42 million.
- ⬇️ Finance cost decreased by -29% to PKR 37.32 million.
- 📉 Profit before taxation decreased by -1% to PKR 141.08 million.
- ⬆️ Taxation increased by 32% to PKR 38.36 million.
- 📉 Profit after taxation decreased by -10% to PKR 102.71 million.
- 📉 Net Profit Ratio decreased from 9% to 6%.
- 📉 EPS decreased from PKR 4.57 to PKR 4.11.
🎯 Investment Thesis
HOLD. While SMCPL has demonstrated significant revenue growth, the declining profitability metrics are concerning. The increase in expenses relative to revenue indicates potential inefficiencies or rising costs. A HOLD recommendation is appropriate until the company can stabilize its profitability and improve its margins. The company needs to effectively manage its expenses and reduce the cost of sales to translate revenue growth into earnings growth. A further analysis is needed to determine if the current issues are one-time events or a sign of a long-term problem.
Disclaimer: AI-generated analysis. Not financial advice.