⚡ Flash Summary

Treet Battery Limited (TBL) reported a challenging first quarter for 2025, with a significant loss after taxation of PKR 117.982 million, a stark contrast to the loss of PKR 16.169 million in the same period last year. The company experienced a decline in sales, from PKR 2,354.180 million to PKR 1,870.804 million. This decrease in revenue, coupled with substantial finance costs, drove the company into a loss position. TBL’s performance reflects pressures in the battery sector, potentially influenced by rising input costs and competitive market dynamics.

📌 Key Takeaways

• 📉 Treet Battery Limited (TBL) reports a net loss of PKR 117.982 million for Q1 2025.
• 📉 Sales decreased to PKR 1,870.804 million from PKR 2,354.180 million YoY.
• 💰 Finance costs remain high at PKR 115.792 million, impacting profitability.
• ⚠️ Loss per share is recorded at (0.11) rupees.
• 💼 Operating expenses slightly increased to PKR 294.164 million.
• 🚫 No cash dividend, bonus shares, or right shares were announced.
• 📉 Gross profit decreased from PKR 479.285 million to PKR 295.855 million.
• ⚠️ Loss before levies and income tax is PKR 117.982 million.
• ✅ Other income contributed PKR 24.036 million, offering some offset.
• 📊 Total Assets increased to PKR 10,278.889 million as of September 30, 2025.
• 📉 Cash flow from operations is negative at PKR (960.950) million.
• 🏦 Short-term borrowings amount to PKR 6,126.443 million.

🎯 Investment Thesis

Based on the Q1 2025 results, a SELL recommendation is warranted for Treet Battery Limited. The company’s declining revenue, significant losses, and negative cash flow raise concerns about its short-term financial stability. A price target of PKR 5.00 is set, with a time horizon of 6-12 months, contingent upon the company’s ability to implement turnaround strategies and improve its financial performance.