⚡ Flash Summary

Roshan Packages Limited (RPL) held a corporate briefing session for the financial year 2024-2025. The presentation highlighted a decrease in net revenue from Rs 10.3B in 2024 to Rs 9.7B in 2025. Despite the revenue decline, the company emphasized its commitment to financial discipline and sustainable investments. Profit Before Tax (PBT) decreased from Rs 419M to Rs 240M, but the company touted proactive tax management and lower finance costs contributing to a Net Profit (PAT) of Rs 141M.

📌 Key Takeaways

• 📉 Revenue decreased to Rs 9.7B in 2025 from Rs 10.3B in 2024.
• 💰 Profit Before Tax (PBT) declined to Rs 240M from Rs 419M.
• ✅ Net Profit (PAT) reached Rs 141M due to tax management and lower finance costs.
• 🏦 Total Assets increased to Rs 12.2B from Rs 11.9B.
• 📊 Breakup Value per Share slightly increased to Rs 54.30 from Rs 54.07.
• 📉 Sales revenue saw a -6.51% decrease in 2025.
• 📈 The company reported a double-digit (13%) growth CAGR over the last 5 years.
• 📊 EBITDA for 2025 was Rs 689 million.
• 📉 Finance costs as a percentage of sales have declined to 2.0% in 2025 after peaking in 2023.
• ✅ The Interest Coverage Ratio has maintained a steady position since 2021.
• ✅ The current ratio remains stable and healthy, fluctuating between 1.57 and 1.70.
• ✅ The company maintains a low and well-managed debt-to-equity ratio, indicating a strong balance sheet.
• ❌ The company has opted not to declare a dividend for FY-2025 to prioritize planned investments.
• ⚡ 52% of the company’s power is from renewable energy.
• 🏭 Corrugated Unit has a capacity of 60,000 Metric Tons / Annum.

🎯 Investment Thesis

Given the mixed financial performance, I recommend a HOLD position. The company faces challenges related to revenue decline and profitability, but it is taking measures to manage costs and reinvest in the business. A BUY recommendation would require stronger revenue growth and improved profitability, while a SELL recommendation would be warranted if the company’s financial condition worsens significantly.