⚡ Flash Summary
Crescent Textile Mills Limited’s Corporate Briefing Session for FY2025 reveals a challenging year. Sales revenue decreased by 20% to PKR 19,004 million, impacting profitability as the company posted a loss after tax of PKR 287 million compared to a profit of PKR 1,750 million in the previous year. Despite the revenue decline, gross profit increased by 25% to PKR 1,704 million. The company remains committed to operational excellence, product diversification, and innovation, according to the future outlook presented.
📌 Key Takeaways
- 📉 Sales revenue decreased by 20%, from PKR 23,756 million in 2024 to PKR 19,004 million in 2025.
- ⬆️ Gross profit increased by 25%, from PKR 1,361 million in 2024 to PKR 1,704 million in 2025.
- 🔻 Loss after tax increased by 84%, from a profit of PKR 1,750 million in 2024 to a loss of PKR 287 million in 2025.
- ⬆️ Non-current assets increased by 7%, from PKR 14,776 million in 2024 to PKR 15,754 million in 2025.
- Revenue reserves decreased by 8%, from PKR 3,306 million in 2024 to PKR 3,042 million in 2025.
- 🔻 Earning per share (EPS) decreased by 84%, from PKR (17.50) in 2024 to PKR (2.87) in 2025.
- ⬆️ Current ratio increased by 3%, from 0.79 times in 2024 to 0.81 times in 2025.
- 🔻 Cash flow from operations to sales decreased by 64%, from 11.51 in 2024 to 4.15 in 2025.
- 10/s~ 100/s yarn counts offered in the spinning product range.
- Production capacity in spinning is 31.434 million kg per year.
- Processing capacity is 41.4 million meters yearly.
- New Digital Printing Machine 134″ width added during 1st Quarter 2025 having capacity of 1.4 million meter yearly.
- Running capacity of power plant: 11~12 MW
- Renewable Energy: 3.5 MW solar energy plant installed at its manufacturing facility in Hattar, KPK and at Faisalabad.
🎯 Investment Thesis
Due to the significant decline in revenue and the company’s shift to a net loss, a HOLD recommendation is appropriate at this time. While the company expresses commitment to improvement, it is prudent to await tangible evidence of a turnaround before considering a more bullish stance. The price target is set at the current market price, contingent on monitoring the company’s performance over the next 6-12 months.
Disclaimer: AI-generated analysis. Not financial advice.