{"id":11422,"date":"2025-08-29T10:55:38","date_gmt":"2025-08-29T05:55:38","guid":{"rendered":"https:\/\/ksestocks.com\/blog\/?p=11422"},"modified":"2025-08-29T10:55:41","modified_gmt":"2025-08-29T05:55:41","slug":"pak-elektron-limiteds-pael-earnings-surge-in-2q2025","status":"publish","type":"post","link":"https:\/\/ksestocks.com\/blog\/pak-elektron-limiteds-pael-earnings-surge-in-2q2025\/","title":{"rendered":"Pak Elektron Limited\u2019s (PAEL) Earnings Surge in 2Q2025"},"content":{"rendered":"\n

Pak Elektron Limited (PAEL<\/a>)<\/strong> has reported strong results for April\u2013June 2025 (2Q2025). The company posted a profit of Rs 1.7 billion (EPS: Rs 1.85)<\/strong>, which is 77% higher than last year<\/strong> and more than 2.5 times the previous quarter<\/strong>. The results were broadly in line with market expectations.<\/p>\n\n\n\n

Key highlights<\/h2>\n\n\n\n
    \n
  • Profit:<\/strong> Rs 1.7bn in 2Q2025 vs. Rs 970mn last year.<\/li>\n\n\n\n
  • Earnings Per Share (EPS):<\/strong> Rs 1.85 vs. Rs 1.05 last year.<\/li>\n\n\n\n
  • Net Sales:<\/strong> Rs 21.1bn, up 21% YoY<\/strong> and 45% QoQ<\/strong>.<\/li>\n\n\n\n
  • Gross Margins:<\/strong> Improved to 27.7%<\/strong> vs. 26.6% last year.<\/li>\n\n\n\n
  • Finance Cost:<\/strong> Fell 38% YoY<\/strong>, helped by lower interest rates.<\/li>\n\n\n\n
  • Tax Rate:<\/strong> Higher at 47% vs. 37% last year.<\/li>\n<\/ul>\n\n\n\n

    What drove the growth?<\/h2>\n\n\n\n
      \n
    1. Strong Appliance Sales:<\/strong>\n
        \n
      • Higher demand for refrigerators and air conditioners during the summer season boosted sales.<\/li>\n\n\n\n
      • Appliance division remains PAEL\u2019s core strength.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
      • Stable Currency:<\/strong>\n
          \n
        • Helped keep import costs under control, which improved gross margins.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
        • Lower Finance Cost:<\/strong>\n
            \n
          • Interest expenses dropped 38% YoY, giving a further boost to profits.<\/li>\n<\/ul>\n<\/li>\n\n\n\n
          • Additional Boost from Transformers:<\/strong>\n
              \n
            • Transformer sales added Rs 4.2bn<\/strong> in the first half of 2025.<\/li>\n<\/ul>\n<\/li>\n<\/ol>\n\n\n\n

              First half 2025 (1H 2025) performance<\/h2>\n\n\n\n
                \n
              • Profit:<\/strong> Rs 2.37bn, up 67% YoY<\/strong>.<\/li>\n\n\n\n
              • Sales:<\/strong> Rs 35.5bn, up 18% YoY<\/strong>, driven by appliances.<\/li>\n\n\n\n
              • Gross Margins:<\/strong> 26.9% vs. 26.8% last year (stable).<\/li>\n<\/ul>\n\n\n\n

                PAEL had a strong quarter<\/strong>, 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.<\/p>\n\n\n\n

                With PAEL trading at a price-to-earnings ratio (P\/E) of 8.2x (2025E)<\/strong> and 7.0x (2026F)<\/strong>, it could be an attractive play for investors watching Pakistan\u2019s consumer and industrial growth story.<\/p>\n\n\n\n

                Source: Topline Securities<\/strong><\/p>\n","protected":false},"excerpt":{"rendered":"

                Pak Elektron Limited (PAEL) has reported strong results for April\u2013June 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.<\/p>\n","protected":false},"author":11,"featured_media":6878,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[154,138],"tags":[157],"class_list":["post-11422","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-analysis","category-financials","tag-pael"],"featured_image_src":{"landsacpe":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAEL-STOCK-PSX-1140x445.png",1140,445,true],"list":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAEL-STOCK-PSX-463x348.png",463,348,true],"medium":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAEL-STOCK-PSX-300x188.png",300,188,true],"full":["https:\/\/ksestocks.com\/blog\/wp-content\/uploads\/2024\/11\/PAEL-STOCK-PSX.png",1920,1200,false]},"_links":{"self":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11422","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/users\/11"}],"replies":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/comments?post=11422"}],"version-history":[{"count":1,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11422\/revisions"}],"predecessor-version":[{"id":11423,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/posts\/11422\/revisions\/11423"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media\/6878"}],"wp:attachment":[{"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/media?parent=11422"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/categories?post=11422"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ksestocks.com\/blog\/wp-json\/wp\/v2\/tags?post=11422"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}