Pak Elektron Limited’s (PAEL) Earnings Surge in 2Q2025
Pak Elektron Limited (PAEL) has reported strong results for April–June 2025 (2Q2025). The company posted a profit of Rs 1.7 billion (EPS: Rs 1.85), which is 77% higher than last year and more than 2.5 times the previous quarter. The results were broadly in line with market expectations.
Key highlights
- Profit: Rs 1.7bn in 2Q2025 vs. Rs 970mn last year.
- Earnings Per Share (EPS): Rs 1.85 vs. Rs 1.05 last year.
- Net Sales: Rs 21.1bn, up 21% YoY and 45% QoQ.
- Gross Margins: Improved to 27.7% vs. 26.6% last year.
- Finance Cost: Fell 38% YoY, helped by lower interest rates.
- Tax Rate: Higher at 47% vs. 37% last year.
What drove the growth?
- Strong Appliance Sales:
- Higher demand for refrigerators and air conditioners during the summer season boosted sales.
- Appliance division remains PAEL’s core strength.
- Stable Currency:
- Helped keep import costs under control, which improved gross margins.
- Lower Finance Cost:
- Interest expenses dropped 38% YoY, giving a further boost to profits.
- Additional Boost from Transformers:
- Transformer sales added Rs 4.2bn in the first half of 2025.
First half 2025 (1H 2025) performance
- Profit: Rs 2.37bn, up 67% YoY.
- Sales: Rs 35.5bn, up 18% YoY, driven by appliances.
- Gross Margins: 26.9% vs. 26.8% last year (stable).
PAEL had a strong quarter, powered by seasonal demand for appliances, stable currency, and lower financing costs. Even though taxes were higher, profits surged, and the company is on track for continued growth.
📢 Announcement: We're on WhatsApp – Join Us There!
With PAEL trading at a price-to-earnings ratio (P/E) of 8.2x (2025E) and 7.0x (2026F), it could be an attractive play for investors watching Pakistan’s consumer and industrial growth story.
Source: Topline Securities
⚠️ This post reflects the author’s personal opinion and is for informational purposes only. It does not constitute financial advice. Investing involves risk and should be done independently. Read full disclaimer →
Leave a Reply