📉 DSFL: SELL Signal (8/10) – Financial Results for the Quarter Ended September 30,2025

📌 Key Takeaways

• 📉 Sales declined from PKR 71.044 million in Sept 2024 to PKR 64.142 million in Sept 2025.
• ⚠️ Gross loss reported at PKR (64.142) million, a concerning shift from the previous year.
• 📉 Operating loss widened to PKR (78.318) million compared to PKR (86.258) million YoY.
• 💸 Finance costs slightly decreased to PKR 4.105 million from PKR 4.361 million.
• 📉 Other income decreased significantly to PKR (21.590) million from PKR (322.074) million YoY.
• 📉 Loss before income tax reported at PKR (60.833) million, a steep decline from a profit of PKR 231.454 million in the same quarter last year.
• 📉 Net loss after taxation is PKR (51.209) million, compared to a profit of PKR 242.924 million in Sept 2024.
• 📉 Basic loss per share is PKR (0.14), a negative swing from earnings per share of PKR 0.66 in the previous year.
• ⚠️ Accumulated losses increased to PKR (23,630,481) from PKR (23,602,834).
• 📉 Net cash used in operating activities is PKR (872) thousand, compared to cash generated of PKR 4.921 million YoY.
• ⚠️ Cash and cash equivalents decreased to PKR (2,951,024) thousand.
• 🚫 No cash dividend, bonus shares, or right shares were declared.
• ⚠️ Company’s financial position shows a concerning trend with increased losses and decreased revenues.

🎯 Investment Thesis

SELL. The company’s financials demonstrate a severe deterioration in performance. The shift to significant losses, negative cash flow, and increasing accumulated losses indicates a high level of financial distress. There is no clear turnaround strategy evident in the announcement. Given these factors, an investment in Dewan Salman Fibre Limited carries an unacceptably high level of risk. The announcement indicates that management expects to transmit PUCARS data separately and within a specified time. We would expect more insights when these are available, but the data provided in this release justifies a sell recommendation.