Thal Limited profit drops 11% to Rs2bn in 1QFY26
MG News | October 30, 2025 at 11:37 AM GMT+05:00
October 30, 2025 (MLN): Thal Limited (PSX: THALL) reported a profit after tax of Rs2.08bn for the quarter ended September 30, 2025, down 11% from Rs2.34bn in the corresponding period last year.
Earnings per share declined to Rs22.76 from Rs25.21 in
SPLY, showing the reduced profitability during the period.
Revenue surged 60% year-on-year to Rs10.42bn from
Rs6.50bn, demonstrating strong top-line growth. Cost of sales increased 58% to
Rs9.53bn from Rs6.02bn, rising broadly in line with revenue expansion.
Gross profit jumped 87% to Rs891.5m against Rs476.5m,
with the gross margin improving to 8.6% from 7.3% in the prior year, indicating
better pricing power and operational efficiency despite higher production
costs.
Distribution and selling expenses increased 69% to
Rs333.0m from Rs197.5m, while administrative expenses rose 24% to Rs624.1m from
Rs502.8m. Other charges surged 316% to Rs9.58m from Rs2.30m last year.
Operating profit declined 19% to Rs1.27bn from Rs1.57bn
in SPLY. Finance costs decreased 37% to Rs166.5m from Rs264.5m in the previous
year, providing some relief. Other income contracted 25% to Rs1.34bn from
Rs1.80bn.
Share of net profit of associates after tax declined 11%
to Rs1.87bn from Rs2.10bn, contributing significantly to overall profitability.
The company concluded 1QFY26 with a profit after taxation
of Rs2.08bn, delivering a net profit margin of 20.0% compared to 35.9% in
1QFY25, reflecting margin compression despite strong revenue growth.
|
STATEMENT OF PROFIT OR
LOSS FOR THE QUARTER ENDED SEPTEMBER 30, 2025 (Rs.000) |
|||
|
Description |
2025 |
2024 |
Change% |
|
Revenue - net |
10,417,785 |
6,500,093 |
60.27% |
|
Cost of sales |
(9,526,250) |
(6,023,589) |
58.15% |
|
Gross Profit |
891,535 |
476,504 |
87.10% |
|
Distribution and selling
expenses |
(333,045) |
(197,504) |
68.63% |
|
Administrative expenses |
(624,096) |
(502,796) |
24.13% |
|
Other charges |
(9,581) |
(2,304) |
315.84% |
|
Subtotal - Expenses |
(966,722) |
(702,604) |
37.59% |
|
Other income |
1,340,798 |
1,795,286 |
-25.32% |
|
Operating Profit |
1,265,611 |
1,569,186 |
-19.35% |
|
Finance costs |
(166,482) |
(264,456) |
-37.05% |
|
Subtotal |
1,099,129 |
1,304,730 |
-15.76% |
|
Share of net profit of
associates - after tax |
1,865,088 |
2,097,139 |
-11.07% |
|
Profit before levy and
taxation |
2,964,217 |
3,401,869 |
-12.87% |
|
Levy |
(30,069) |
(247,901) |
-87.87% |
|
Profit before taxation |
2,934,148 |
3,153,968 |
-6.97% |
|
Taxation |
(850,479) |
(818,012) |
3.97% |
|
Profit after taxation |
2,083,669 |
2,335,956 |
-10.80% |
|
Earnings Per Share
(Rupees) |
22.76 |
25.21 |
-9.72% |
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