⏸️ PACE: HOLD Signal (6/10) – Financial Results for the Quarter Ended 2025-09-30

📌 Key Takeaways

• Revenue decreased significantly by 68% to Rs 151.567 million compared to Rs 474.139 million year-over-year. 📉
• Gross profit decreased to Rs 86.704 million from Rs 222.673 million in the previous year. 📉
• Other income increased significantly to Rs 363.769 million from Rs 9.703 million year-over-year. 🚀
• Profit from operations increased significantly to Rs 370.488 million from Rs 192.645 million year-over-year. 📈
• Finance costs increased to Rs 49.337 million from Rs 39.866 million in the previous year. 💸
• Exchange gains were Rs 42.892 million compared to Rs 11.009 million year-over-year. 💹
• Profit before income tax and minimum taxes increased significantly to Rs 364.043 million from Rs 162.796 million year-over-year. 🌟
• Profit after taxation increased significantly to Rs 362.148 million from Rs 156.870 million year-over-year. 🎉
• Basic and diluted earnings per share increased to Rs 1.30 from Rs 0.56 year-over-year. 🚀
• The Board has approved the issuance of up to 1,300 million ordinary shares at Rs. 10.00 per share to Pace Barka Properties Limited, subject to regulatory approvals. 🤝
• These new shares cannot be sold on the market for two years after issuance. 🔒
• The Board approved acquiring Pace Circle Project from Pace Barka Properties Limited, with fair value to be determined by a registered valuer. 🏢

🎯 Investment Thesis

HOLD. The company’s increased profitability and EPS are encouraging, but the decline in revenue raises concerns about its long-term sustainability. The potential issuance of new shares could dilute existing shareholders’ value, but the Pace Circle Project acquisition could offer future growth opportunities. A more detailed analysis of the sources of ‘other income’ and the financials of the Pace Circle Project is needed before making a stronger recommendation.