⚡ Flash Summary
WAHN’s Corporate Briefing Session 2025 highlights the company’s performance and future outlook. In FY 2024-25, WAHN achieved its highest ever net sales of Rs. 5,096 million, a 9% increase YoY. However, gross profit decreased by 19% due to increased input costs. Despite this, shareholders’ equity increased by Rs 396 million and a 100% cash dividend was paid. The company anticipates pressure on margins due to competition, rising raw material costs, and taxation.
📌 Key Takeaways
- 📈 Record net sales of Rs. 5,096 million in FY 2024-25, up 9% year-over-year.
- 📉 Gross profit decreased by 19% to Rs. 854 million due to higher input costs.
- 💰 Finance costs significantly reduced by 38% to Rs. 18 million.
- 📉 After-tax profit declined by 12% to Rs. 482 million from Rs. 549 million.
- Raw material prices and super tax affected the bottom line.
- 🏦 Shareholders’ equity increased by Rs. 396 million.
- 💸 100% cash dividend was paid to shareholders.
- 🏭 Urea Formaldehyde Moulding Compound plant capacity expansion to 19,000 TPY in 2025.
- 🧪 Formaldehyde plant total installed capacity of 80,000 TPY as of 2019.
- ⚠️ Anticipated pressure on margins due to competition and rising costs.
- 🌍 Export to Afghanistan affected by border closure.
- 🌱 Management aims to mitigate risks and achieve growth in FY 2025-26.
- Earnings Per Share decreased from Rs 61.05 to Rs 53.55.
- Break up value per share increased from Rs 251 to Rs 295.
🎯 Investment Thesis
HOLD. WAHN has achieved strong revenue growth, but profitability is under pressure. The company’s expansion plans and management’s commitment to growth are positive, but the risks need to be monitored. Await further clarity on cost management strategies before changing recommendation.
Disclaimer: AI-generated analysis. Not financial advice.