β‘ Flash Summary
Dewan Cement Limited reported a challenging first quarter ending September 30, 2025, with a significant loss after taxation of PKR 396.457 million, compared to a loss of PKR 252.173 million in the same quarter last year. Sales increased to PKR 5,590.963 million from PKR 4,820.805 million year-over-year. However, the company experienced a gross loss of PKR 160.757 million, a sharp decline from a gross profit of PKR 296.848 million in the prior year. The loss per share also widened to PKR -0.82 compared to PKR -0.52 in the corresponding period.
π Key Takeaways
- π Loss after Taxation: Increased significantly to PKR 396.457 million in Q1 2025 from PKR 252.173 million in Q1 2024.
- π Sales Growth: Sales-Net increased to PKR 5,590.963 million from PKR 4,820.805 million, indicating a ~16% growth in revenue.
- π Gross Profit Decline: Turned into a gross loss of PKR 160.757 million from a gross profit of PKR 296.848 million.
- πΈ Operating Loss: Operating loss widened to PKR 255.175 million compared to PKR 66.521 million.
- β Loss Per Share: Loss per share worsened to PKR -0.82 from PKR -0.52.
- π΅ Finance Costs: Finance cost slightly decreased to PKR 2.608 million from PKR 3.272 million.
- β οΈ Negative Earnings: The company’s earnings continue to be negative, raising concerns about its financial health.
- π° Cash Flow Decline: Net cash inflows from operating activities decreased to PKR 10.030 million from PKR 153.599 million.
- Investments: Net cash outflows from investing activities remained significant at PKR (39.479) million.
- π¦ Cash Position: Cash and cash equivalents at the end of the period decreased to PKR 124.982 million.
- π No Dividends: No cash dividend, bonus shares, or right shares were declared.
- Assets: Total assets stood at PKR 46,985.351 million.
π― Investment Thesis
Given the significant losses, declining cash flows, and overall deterioration in financial performance, a SELL recommendation is warranted for Dewan Cement Limited. The company faces considerable challenges in turning around its operations and achieving profitability. Price Target: Given the current negative earnings, it is difficult to assign a price target, but further downside is expected. Time Horizon: Short-term, as the company’s challenges are likely to persist in the near future.
Disclaimer: AI-generated analysis. Not financial advice.