AsiaNet-Pakistan Premier Editorial Content and Press Release Distribution Service
Lahore: Pak Elektron Limited (PAEL) reported a significant increase in its second-quarter earnings for 2025, with earnings per share reaching Rs1.85, marking a 77% rise year-over-year and a 2.6-fold increase quarter-over-quarter. The results aligned with market expectations.
The company attributed the earnings growth primarily to a 21% year-over-year and 45% quarter-over-quarter increase in net sales, totaling Rs21.1 billion. This growth was largely driven by heightened seasonal demand for appliances, notably refrigerators and air conditioners, during the summer months.
In addition to appliance sales, PAEL recorded Rs4.2 billion in transformer sales during the first half of 2025, according to industry sources.
PAEL’s gross margins improved to 27.7% in the second quarter, up from 26.6% in the same period last year, and 26.0% in the previous quarter. The company cited a stable currency as a contributing factor to this improvement.
The effective tax rate for the second quarter stood at 47%, compared to 37% in the same quarter last year, remaining unchanged from the prior quarter. The increase in the tax rate was attributed to a deferred tax impact of 3% during the first half of 2025.
Distribution expenses rose by 2% year-over-year and 15% quarter-over-quarter, amounting to Rs1,261 million, reflecting higher volumetric sales.
For the first half of 2025, PAEL’s earnings increased by 67% year-over-year to Rs2.37 billion, driven by an 18% increase in revenue. The appliance division, which typically sees stronger sales in the first half of the year, was a key contributor to this revenue growth.
The company’s gross margins for the first half of 2025 were slightly higher at 26.9%, compared to 26.8% in the first half of 2024.
PAEL is currently trading at a price-to-earnings ratio of 8.2 for 2025 and 7.0 for 2026.