⚡ Flash Summary

Macter International Limited’s Annual Report for the year ended June 30, 2025, reveals a company experiencing robust growth and profitability. The company reported a 32% increase in net turnover compared to the previous year. This growth was driven primarily by increased unit sales and new product launches, with exports growing by 163%. The company has recommended a final cash dividend of 20%, equivalent to Rs. 2.00 per share, in addition to an interim cash dividend of Rs. 1.80 per share.

📌 Key Takeaways

• 📈 Net turnover increased by 32% to Rs. 9,914 million, driven by unit sales and new products.
• 🌍 Export growth reached 163%, reflecting a strategic push for international expansion.
• 💰 A final cash dividend of 20% (Rs. 2.00 per share) was recommended, plus an interim dividend of 18% (Rs. 1.80 per share).
• 🌱 Gross margins improved by 2.7% due to a better sales mix and export business.
• 💼 Operating profit rose by 73% to Rs. 1,234 million, attributed to sales and efficiency.
• 💸 Finance costs increased marginally by 2% to Rs. 102 million.
• 📊 Profit before tax grew by 85% to Rs. 1,132 million.
• ✅ Profit after tax increased by 73% to Rs. 738 million.
• 🚧 Capital expenditure of Rs. 870 million was made for new equipment and facility upgrades.
• ⭐ Earnings per share (EPS) increased from Rs. 9.32 to Rs. 16.10.
• ☀️ Installed a 378 kW solar system to reduce carbon footprint; planning an additional 140 kW.
• 🏆 Received a credit rating of A/A-1 from VIS Credit Rating Company, with a ‘Stable’ outlook.
• 🤝 Contributed Rs. 1,079 million to the National Exchequer through taxes and duties.
• 🛡️ Identified business risks including cost inflation, rupee devaluation, and regulatory requirements.

🎯 Investment Thesis

Macter International Limited is a BUY. Strong revenue growth and increased profitability, alongside the potential for growth with new products and export strategy. A target price of Rs. 650, based on 40x FY25 EPS, reflecting growth potential and dividend yield.