The Thal Industries Corporation Limited (TICL) has announced an exceptional full-year performance for the period ended September 30, 2025. The company's profit for the year more than doubled, a remarkable achievement underpinned by substantial revenue growth and a significant, strategic reduction in finance costs. This robust financial health is further underscored by a generous cash dividend, signaling strong shareholder returns and a positive outlook for the company on the Pakistan Stock Exchange (PSX).
Stellar Financial Performance
TICL's net sales demonstrated spectacular growth, surging by approximately 68.6% from Rs. 28.61 billion in 2024 to Rs. 48.23 billion in 2025. This top-line expansion translated into a healthy increase in gross profit, which rose from Rs. 4.58 billion to Rs. 6.18 billion. However, the gross profit margin experienced a slight contraction, moving from 16.0% in 2024 to 12.8% in 2025, indicating potential shifts in cost of sales or pricing dynamics that warrant investor attention.
Despite increased operating expenses, operating profit still grew impressively to Rs. 4.54 billion from Rs. 3.23 billion. A notable change was the significant decrease in 'Other Income,' which fell from Rs. 1.24 billion to Rs. 457 million. Crucially, finance costs were drastically reduced by over 43.3%, dropping from Rs. 2.89 billion in 2024 to Rs. 1.64 billion in 2025, a clear testament to the company's effective debt management strategy.
The combined effect of higher sales and significantly lower finance costs propelled the profit for the year to Rs. 2.33 billion, more than double the Rs. 1.14 billion reported in the previous year. Consequently, Earnings Per Share (EPS) saw an impressive jump from Rs. 75.61 to Rs. 154.99, reflecting enhanced profitability for shareholders.
From a cash flow perspective, the company demonstrated a dramatic reversal, with cash generated from operating activities swinging from a negative Rs. 8.52 billion in 2024 to a robust positive Rs. 13.66 billion in 2025. The balance sheet also reflects significantly improved financial health, with total current liabilities reduced by approximately 65%, from Rs. 16.70 billion in 2024 to Rs. 5.83 billion in 2025. This substantial reduction was largely driven by a massive repayment of short-term borrowings.
Key Drivers & Strategic Insights
The primary driver of this exceptional performance is the substantial increase in sales, indicating strong market demand for TICL's core products. While specific segment details are not provided in the announcement, the overall revenue growth points to broad-based strength in the company's operations. The secondary, yet equally critical, driver was the significant reduction in finance costs, which directly boosted the bottom line and improved financial stability.
However, rational investors should note the decline in gross margins and other income, which partially offset the gains from sales growth and reduced finance costs. Understanding the underlying reasons for these shifts will be important for future analysis and sustained performance.
Management's Confidence and Strategic Moves
Management has demonstrated strong confidence in the company's performance and future prospects by recommending a 100% cash dividend, equivalent to Rs. 10.00 per share, for the year ended September 30, 2025. This is a powerful signal of commitment to shareholder returns and a belief in the company's ongoing profitability.
A key strategic move evident from the financial statements is the aggressive deleveraging. The company repaid Rs. 478 million in loans from directors and significantly reduced its short-term borrowings from Rs. 11.85 billion to Rs. 1.49 billion. This substantial reduction in financial leverage dramatically improves the company's risk profile and strengthens its balance sheet. Furthermore, an increase in Property, Plant & Equipment from Rs. 6.15 billion to Rs. 7.45 billion suggests ongoing capital expenditure and investment in operational capacity for future growth.
Investor Takeaway: A Company on the Rise
TICL's latest results present a compelling case for investors seeking growth and stability. The company has delivered robust profit growth, generated exceptional operating cash flows, and significantly strengthened its balance sheet through strategic debt reduction. The declaration of a healthy cash dividend further enhances its appeal as a rewarding investment.
Moving forward, investors should closely monitor the sustainability of sales growth and the trajectory of gross margins. While the deleveraging story is undeniably positive, understanding the factors behind the reduced 'Other Income' will also be crucial. Overall, TICL appears to be in a strong financial position, capable of both rewarding shareholders and pursuing future growth initiatives, making it a company to watch closely on the PSX.