Pak Elektron's 9MCY25 profit rises 64%

October 30, 2025 (MLN):  Pak Elektron Limited (PSX: PAEL) reported a profit after taxes of Rs3.05bn for the nine months ended September 30, 2025, up 64% from Rs1.86bn in the corresponding period last year.

Basic earnings per share increased 64% to Rs3.38 compared to Rs2.06 in 9MCY24.

Revenue from contracts with customers rose 16% year-on-year to Rs63.30bn from Rs54.77bn, demonstrating solid demand during the period. Sales tax and discounts increased 23% to Rs16.51bn from Rs13.41bn.

Net revenue grew 13% to Rs46.79bn from Rs41.35bn in 9MCY24. Cost of sales increased 12% to Rs34.08bn from Rs30.39bn.

Gross profit increased 16% to Rs12.71bn against Rs10.97bn in 9MCY24, with the gross margin improving marginally to 27.2% from 26.5% in the prior year period, indicating stable operational efficiency.

Other income increased 86% to Rs92.2m from Rs49.6m last year. Selling and distribution expenses rose 13% to Rs3.18bn from Rs2.82bn, while administrative expenses increased 10% to Rs2.02bn from Rs1.84bn.

Other expenses increased 73% to Rs14.6m from Rs8.4m.

The company recorded an operating profit of Rs7.47bn, up 18% from Rs6.36bn in 9MCY24.

Finance costs declined 35% to Rs1.91bn from Rs2.93bn in the previous year, providing substantial relief to the bottom line.

Profit before statutory levies and income taxes stood at Rs5.56bn, up 62% from Rs3.43bn in 9MCY24. Provision for statutory levies increased 64% to Rs387m from Rs235.5m.

Profit before income taxes rose 62% to Rs5.18bn from Rs3.19bn in 9MCY24.

Provision for income taxes increased 60% to Rs2.13bn from Rs1.33bn in the prior period.

The company concluded 9MCY25 with a net profit of Rs3.05bn, delivering a net profit margin of 6.5% compared to 4.5% in 9MCY24.

The strong profit growth was driven by robust revenue expansion, improved gross margins, and a significant 35% reduction in finance costs, demonstrating effective financial management and operational efficiency across the company's diversified business portfolio.

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