⚡ Flash Summary
Treet Corporation’s financial results for the quarter ended September 30, 2025, show mixed performance. Revenue increased modestly compared to the same period last year. Earnings per share (EPS) also increased. However, the company reported a net decrease in cash and cash equivalents, indicating potential challenges in managing its liquidity.
📌 Key Takeaways
- ⬆️ Revenue from contracts with customers increased to PKR 3,683.47 million from PKR 3,316.69 million in the same quarter last year.
- ⬆️ Gross profit increased significantly to PKR 1,372.69 million compared to PKR 993.10 million in the previous year.
- ⚠️ Finance costs decreased substantially to PKR 185.36 million from PKR 414.39 million, positively impacting profitability.
- ⬆️ Profit for the year increased to PKR 381.81 million from PKR 259.19 million.
- ⬆️ Basic and diluted earnings per share (EPS) both increased to PKR 1.03 from PKR 0.70.
- ⚠️ Net cash outflow from operating activities was PKR 82.07 million compared to an inflow of PKR 469.72 million in the same period last year.
- 🔻 Cash and cash equivalents decreased to PKR (1,343.50) million from PKR (3,107.54) million at the end of the same period last year.
- ⚠️ Short term borrowings – secured increased to PKR 6,363.65 million from PKR 6,302.37 million compared to June 2025.
- ⬆️ Operating profit increased to PKR 524.83 million compared to PKR 339.94 million in the same quarter last year.
- ⬆️ Total comprehensive income for the period amounted to PKR 381.81 million, up from PKR 259.19 million in the prior year’s quarter.
- ⚠️ The company reported a net decrease in cash and cash equivalents of PKR 462.20 million for the quarter.
- ⬆️ Consolidated basic earnings per share increased to PKR 0.38 from PKR 0.19 in the same period last year.
- ⚠️ Trade and other payables increased to PKR 5,582.61 million compared to PKR 5,084.14 million as of June 2025.
- ⬆️ Non-current assets increased to PKR 12,365.04 million as compared to PKR 12,199.51 million as of June 2025.
- ⚠️ The company’s cash and bank balances decreased to PKR 1,491.29 million as compared to PKR 1,954.49 million as of June 2025.
🎯 Investment Thesis
Based on the improved revenue, profitability, and EPS, a HOLD recommendation is appropriate. While the financials show positive trends in profitability and revenue growth, the negative cash flow and decrease in cash reserves present concerns. A potential price target could be set based on a multiple of earnings, but a detailed discounted cash flow analysis would be necessary to arrive at a more precise valuation. A medium-term (6-12 months) horizon is appropriate to monitor the company’s cash flow management and sustainability of its revenue and earnings growth.
Disclaimer: AI-generated analysis. Not financial advice.