announcements

⚡ Flash Summary

Punjab Oil Mills Limited (POML) reported its financial results for the first quarter ended September 30, 2025. The company experienced a notable increase in net sales, reaching PKR 2,605.14 million compared to PKR 1,887.39 million in the same quarter last year. However, the company reports net profit of PKR 23.42 million compared to a net loss of PKR 22.74 million in the same quarter last year. The company did not declare any cash dividend, bonus shares, or right shares for the quarter.

📌 Key Takeaways

• 📈 Net sales increased to PKR 2,605.14 million, up from PKR 1,887.39 million year-over-year.
• 📊 Gross profit rose to PKR 275.40 million, compared to PKR 217.98 million in the previous year.
• 📉 Selling and distribution expenses increased to PKR 117.42 million from PKR 102.80 million year-over-year.
• 🏢 Administrative expenses decreased to PKR 72.48 million from PKR 90.87 million year-over-year.
• 💼 Operating profit increased significantly to PKR 85.49 million, compared to PKR 24.31 million in the same quarter last year.
• 💰 Finance costs decreased to PKR 26.11 million from PKR 41.64 million year-over-year.
• 📉 Other operating expenses increased to PKR 4.98 million from PKR 0.47 million year-over-year.
• 💸 Other income increased to PKR 2.30 million from PKR 18.67 million year-over-year.
• ✅ Profit before income tax increased to PKR 56.70 million from PKR 0.87 million year-over-year.
• 🧾 Income tax expense increased to PKR 33.28 million from PKR 23.61 million year-over-year.
• ✅ Net profit for the year is PKR 23.42 million, compared to a loss of PKR 22.74 million year-over-year.
• 📉 Loss / Earnings per share (basic and diluted) is PKR 3.02, compared to PKR -2.93 year-over-year.
• ❌ No cash dividend, bonus shares, or right shares were declared.
• 🌱 Total Equity increased to PKR 2,600.58 million as of September 30, 2025, from PKR 2,577.16 million as of June 30, 2025.
• 🏦 Cash and bank balances decreased to PKR 46.52 million from PKR 100.50 million from June 30, 2025.

🎯 Investment Thesis

HOLD. While the turnaround from a loss to a profit and substantial revenue growth are positive signs, the decreased cash balance and increased selling and distribution expenses raise concerns. A HOLD recommendation is appropriate until further quarters confirm sustainable profitability and efficient cash management. Price target will be re-evaluated after the next quarter’s results.