⏸️ ORM: HOLD Signal (5/10) – Transmission of Quarterly Report for the Period Ended September 30, 2025

📌 Key Takeaways

• ⬆️ Revenue increased slightly to Rs. 612.05 million from Rs. 588.49 million year-over-year.
• 📉 Gross profit decreased to Rs. 121.65 million from Rs. 151.47 million.
• ⚠️ Profit before management fee fell to Rs. 86.29 million from Rs. 109.41 million.
• 📉 Profit before levies and taxation declined to Rs. 77.76 million from Rs. 94.89 million.
• ⬆️ Levies increased to Rs. 16.03 million from Rs. 9.33 million.
• 📉 Profit before taxation dropped to Rs. 61.73 million from Rs. 85.56 million.
• ⬆️ Taxation decreased to Rs. 32.70 million from Rs. 35.22 million.
• 📉 Profit after taxation significantly decreased to Rs. 29.03 million from Rs. 50.34 million.
• 📉 Earnings per certificate decreased to Rs. 0.39 from Rs. 0.67.
• ⛽ Operation and Maintenance segment revenue rose by 22% year-over-year, showing strong performance.
• ⬆️ Operating expenses increased due to higher staff costs and depreciation.
• ⬇️ Financial charges decreased to Rs. 22.2 million due to lower borrowings and markup rates.
• ⚠️ Effective tax rate increased to 63% due to higher withholding tax rates.
• 🇵🇰 Pakistan’s economy shows signs of stabilization with a 4.1% CPI year-over-year.

🎯 Investment Thesis

Based on the mixed performance, it is a HOLD. The company faces challenges in its rental segment due to market conditions and regulatory changes, negatively impacting profitability. While the O&M segment shows promise, the overall financial performance is declining. A more comprehensive turnaround strategy needs to be observed before recommending a BUY.