⚡ Flash Summary
Crescent Jute Products Limited (CJPL) reports a challenging quarter ending September 30, 2025, with a significant loss after taxation of PKR 1.475 million, although this is an improvement compared to the PKR 2.127 million loss in the same quarter last year. Revenue remains minimal at PKR 73,760, a stark contrast to the negative revenue of PKR 480,507 in the prior year, which may indicate some accounting adjustments. The company’s accumulated loss has increased to PKR 478.122 million. Cash flow from operations remains negative, signaling continued liquidity pressures.
📌 Key Takeaways
- 📉 CJPL’s Loss After Taxation: PKR 1.475 million (Q3 2025) vs. PKR 2.127 million (Q3 2024).
- 📈 Revenue: PKR 73,760 in Q3 2025, a massive increase from negative PKR 480,507 in Q3 2024.
- ⛔️ Accumulated Loss: Increased to PKR 478.122 million as of September 30, 2025.
- 💸 Negative Operating Cash Flow: Indicates ongoing liquidity issues.
- ⚠️ Total Equity: Negative PKR 204.854 million, highlighting severe financial distress.
- 🏦 Current Assets: Significantly lower at PKR 771,592 compared to PKR 2.532 million as of June 30, 2025.
- 💰 Bank Balances: Decreased drastically to PKR 39,646 from PKR 1.547 million, raising concerns about solvency.
- 🚧 Operating Fixed Assets: Slightly decreased to PKR 1.603 million from PKR 1.640 million.
- 🧾 Total Liabilities: Remain high at PKR 207.228 million.
- Share premium remains unchanged at PKR 35.633 million.
- Basic and diluted Loss Per Share improved to (0.06) from (0.09).
- Cash used in operating activities increased from (31,867) to (1,503,275).
🎯 Investment Thesis
SELL. The company’s negative equity, minimal revenue, and dwindling cash reserves suggest a high probability of financial distress. Even with the reduced loss, the underlying financial health is deteriorating. Therefore, a sell recommendation is justified to avoid further capital erosion. The current situation makes any investment highly speculative with a low probability of positive returns.
Disclaimer: AI-generated analysis. Not financial advice.