⚡ Flash Summary

Saif Power Limited reported a net loss of Rs. 161 million for the nine months ended September 30, 2025, a stark contrast to the Rs. 1,054 million net profit in the same period last year. Turnover decreased from Rs. 8,146 million to Rs. 7,380 million. However, the dispatch level increased significantly from 9.88% to 14.53%. Despite the reported loss, the company highlights that it continues to generate positive cash flows after adjusting for non-cash items. The board approved an interim cash dividend of Rs. 1 per share.

📌 Key Takeaways

• 📉 Net loss of Rs. 161 million compared to a profit of Rs. 1,054 million in the prior year.
• 💰 Loss per share of Rs. 0.42 versus earnings per share of Rs. 2.73 in the same period last year.
• ⚡ Turnover decreased to Rs. 7,380 million from Rs. 8,146 million.
• 📈 Dispatch level increased to 14.53% from 9.88%.
• 💸 Approved interim cash dividend of Rs. 1 per share.
• ✅ Amendment Agreement signed with GoP, CPPA-G, and Energy Task Force, effective November 1, 2024.
• 🤝 Agreement involves conversion to a ‘Hybrid Take and Pay Model’.
• ⚖️ Pending issues with SNGPL regarding arbitration award.
• ⚠️ Litigation pending in the Supreme Court of Pakistan.
• 🏦 Short-term borrowings decreased significantly to Rs 3,399 million from Rs. 7,844 million.
• 💡 Loan to Saif Textile Mills Limited revised, increasing loan amount to Rs. 400 million.

🎯 Investment Thesis

Given the net loss, declining revenue, and pending litigation, a HOLD rating is appropriate. While the company continues to generate positive cash flows, the performance raises serious questions about future profitability. The new agreement with the government may provide some stability. Monitoring required for the next quarter. Price target cannot be determined at this time.