⚡ Flash Summary
WAFI Energy Pakistan Limited’s financial results for the quarter and nine months ended September 30, 2025, reveal a mixed performance. A cash dividend of Rs. 3 per share (30%) was declared, which seems to be the only positive highlight in an otherwise lackluster report. There were no bonus or right shares issued. Key areas of concern include declining profitability and some balance sheet fluctuations that need further scrutiny to determine the company’s financial health.
📌 Key Takeaways
- 💰 Cash dividend declared: Rs. 3 per share, equating to a 30% payout.
- ❌ No bonus shares: NIL bonus shares issued for the period.
- 🚫 No right shares: NIL right shares offered to shareholders.
- 📉 Net revenue decreased: From PKR 321.99 billion (2024) to PKR 342.97 billion (2025).
- 📉 Profit before tax declined: Decreased from PKR 3.55 billion (2024) to PKR 6.25 billion (2025).
- 📉 Profit after tax declined: Decreased from PKR 723.82 million to PKR 3.03 billion.
- 📉 EPS increased: From PKR 3.38 (2024) to PKR 14.16 (2025).
- ⚠️ Stock-in-trade decreased: From PKR 45.62 billion to PKR 39.97 billion, potentially indicating slower sales.
- ⬆️ Trade debts increased: From PKR 7.73 billion to PKR 9.76 billion, suggesting potential issues with collections.
- ⬇️ Short-term investments decreased: Significantly decreased from PKR 10.69 billion to PKR 4.00 billion.
- ⬆️ Bank balances increased: Increased from PKR 4.70 billion to PKR 14.81 billion.
- ⚠️ Long-term provisions decreased: Decreased from PKR 3.74 billion to PKR 2.40 billion.
- ⬆️ Long-term lease liabilities increased: From PKR 6.84 billion to PKR 11.20 billion, indicating increased financial leverage.
- ⚠️ Trade and other payables remained largely flat: Showing only a slight decrease from PKR 73.90 billion to PKR 73.35 billion.
🎯 Investment Thesis
Based on the current financials, a SELL recommendation is warranted. The declining profitability and concerning balance sheet trends outweigh the positive dividend announcement. Without a clear turnaround strategy or significant improvement in financial performance, WAFI Energy appears to be a risky investment. Price target: 40, time horizon: 6 months.
Disclaimer: AI-generated analysis. Not financial advice.