⚡ Flash Summary
The Pakistan Credit Rating Agency Limited (PACRA) reported its unaudited financial results for the quarter ended September 30, 2025. The report indicates a decrease in revenue compared to the same period last year, alongside a drop in profit for the period. No cash dividend, bonus shares, or right shares were recommended by the board. Further analysis is needed to assess the implications of these results on PACRA’s financial health and future prospects.
📌 Key Takeaways
- 📉 Revenue from contracts decreased to PKR 116.10 million in Q3 2025 from PKR 122.65 million in Q3 2024.
- 📉 Operating profit declined to PKR 35.61 million in Q3 2025 from PKR 44.61 million in Q3 2024.
- 📉 Profit for the period decreased to PKR 27.21 million in Q3 2025 from PKR 29.37 million in Q3 2024.
- 📉 Basic and diluted earnings per share (EPS) decreased to PKR 0.37 in Q3 2025 from PKR 0.39 in Q3 2024.
- ⚠️ No cash dividend was recommended for the quarter.
- ⚠️ No bonus shares were recommended for the quarter.
- ⚠️ No right shares were recommended for the quarter.
- 👍 Total assets increased to PKR 395.12 million as of September 30, 2025, from PKR 360.39 million as of June 30, 2025.
- 👍 Equity and liabilities increased to PKR 395.12 million as of September 30, 2025, from PKR 360.39 million as of June 30, 2025.
- ⚠️ Finance cost decreased from PKR (559,822) to PKR (1,013,981).
- ⚠️ Decrease in profit before income tax and levy from PKR 48,299,250 to PKR 39,175,280.
- 👍 Issued, subscribed, and paid-up share capital remained consistent at PKR 74,529,000.
- 👍 Cash and bank balances decreased to PKR 54.88 million as of September 30, 2025, from PKR 128.34 million as of June 30, 2025.
- 👍 Unappropriated profits – revenue reserve increased to PKR 113.31 million as of September 30, 2025, from PKR 86.10 million as of June 30, 2025.
🎯 Investment Thesis
Given the decline in revenue, operating profit, and EPS, along with the absence of any dividend or bonus announcements, a SELL recommendation is warranted. The financial performance raises concerns about PACRA’s ability to sustain its business and generate shareholder value. Further monitoring of the company’s performance and market conditions is recommended before reconsidering an investment.
Disclaimer: AI-generated analysis. Not financial advice.