⏸️ SNGP: HOLD Signal (5/10) – FINANCIAL RESULTS FOR THE 3RD QUARTER ACCOUNTS FOR THE PERIOD ENDED MARCH 31, 2025

📌 Key Takeaways

• 📉 Revenue inclusive of tariff adjustment decreased to PKR 366.83 billion from PKR 398.60 billion year-over-year.
• ⛽ Cost of gas sales decreased to PKR 324.83 billion from PKR 387.86 billion year-over-year.
• 😟 Gross profit significantly decreased to PKR 42.00 billion from PKR 10.73 billion year-over-year.
• 💰 Other income decreased to PKR 3.47 billion from PKR 10.88 billion year-over-year.
• 💼 Operating profit decreased to PKR 10.72 billion from PKR 15.47 billion year-over-year.
• 💸 Finance costs decreased to PKR 6.40 billion from PKR 9.41 billion year-over-year.
• 😔 Profit before income tax decreased to PKR 4.32 billion from PKR 4.79 billion year-over-year.
• 🧾 Income tax increased to PKR 1.93 billion from PKR 1.09 billion year-over-year.
• 📉 Profit for the period decreased to PKR 2.39 billion from PKR 3.70 billion year-over-year.
• 📉 Earnings per share (basic and diluted) decreased to PKR 3.77 from PKR 5.83 year-over-year.
• ❌ No cash dividend was recommended by the Board of Directors.
• 🏢 Total equity increased to PKR 71.48 billion as of March 31, 2025, compared to PKR 64.19 billion as of June 30, 2024.
• ⚠️ Long term financing from financial institutions (secured) decreased to PKR 16.21 billion from PKR 22.99 billion.
• 💵 Cash and bank balances decreased to PKR (135.61) billion from PKR (109.48) billion.

🎯 Investment Thesis

Based on the Q3 2025 results, a HOLD recommendation is appropriate. The decreased profitability and EPS are concerning, but the company’s efforts to manage costs and maintain equity are positive signs. Further monitoring of the company’s operational efficiency, revenue generation, and response to market challenges is required. A price target cannot be recommended until there is more information and further analysis is completed. Time horizon is 6-12 months.