⚡ Flash Summary
SPEL Limited’s financial results for the quarter ended September 30, 2025, reveal a mixed performance. While the company reported a slight increase in sales, its profit after taxation decreased compared to the same quarter last year. The company declared NIL interim cash dividend per share, NIL bonus shares and NIL right shares. The results also show changes in current assets and liabilities, impacting cash flow from operations.
Signal: HOLD ⏸️
Strength: 5/10
Sentiment: NEGATIVE
Time Horizon: MEDIUM_TERM
📌 Key Takeaways
- ❌ Sales increased slightly from Rs. 2,309.08 million in 2024 to Rs. 2,352.44 million in 2025.
- 🔻 Profit after taxation decreased from Rs. 284.92 million to Rs. 261.61 million.
- 📉 Basic and diluted earnings per share (EPS) decreased from Rs. 1.50 to Rs. 1.38.
- 💰 No interim cash dividend declared for the period ended September 30, 2025.
- 🚫 No bonus shares will be issued for every shares held.
- ❌ The board has recomended NOT to issue any right shares
- ⚠️ Operating profit increased slightly from Rs. 455.30 million to Rs. 456.65 million.
- 📊 Administrative expenses increased from Rs. 96.75 million to Rs. 128.47 million.
- 💸 Selling and distribution expenses increased from Rs. 17.79 million to Rs. 22.35 million.
- 📉 Finance costs decreased from Rs. 36.40 million to Rs. 16.51 million.
- 📉 Cash generated from operations decreased significantly.
- ❗ Trade debts decreased from Rs. 1,302 million to Rs. 990 million
🎯 Investment Thesis
HOLD. Given the decrease in profitability and no dividend declaration, a HOLD recommendation is appropriate. The company needs to demonstrate improved financial performance and dividend-paying ability to warrant a more positive investment stance. Price target: Dependent on future earnings growth.
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Disclaimer: AI-generated analysis. Not financial advice.
