Mehmood Textile Mills Ltd. (MEHT) recently held an analyst briefing to discuss its FY25 results and future outlook. Key highlights, according to AKD Research, are as follows:

To recall, the company’s profitability increased by 3.9x YoY to PkR978mn (EPS: PkR32.6) in FY25, compared to PkR250mn (EPS: PkR8.3) in SPLY, primarily led by lower finance cost and a shift back to the normal tax regime amid improved profitability.

·        Revenue declined by 14%YoY to PkR57.1bn during FY25, mainly due to a 68%YoY drop in exports as the company shifted its focus to value-added segments amid the global slowdown and rising competitive pressures.

·        In 1QFY26, profitability surged by 2.7x YoY to PkR250mn (EPS: PkR8.3) in 1QFY25, compared to PkR92mn (EPS: PkR2.7) in SPLY, supported by easing finance cost and improved operating margins.

https://research.akdsl.com/638992683875809410.pdf

AKD Research