announcements

⚡ Flash Summary

Grays Leasing Limited’s financial results for the quarter ended September 30, 2025, reveal a concerning decline in profitability. Revenue decreased significantly compared to the same quarter last year, leading to a substantial drop in profit before taxation and profit after taxation. The company reported a lower profit per share, reflecting the overall downturn in financial performance. Investors should carefully evaluate the factors contributing to this decline before making investment decisions.

📌 Key Takeaways

• 📉 Revenue declined by 20.1% from PKR 6.963 million to PKR 5.561 million.
• 📉 Income from lease operations decreased by 19.5% from PKR 6.283 million to PKR 5.059 million.
• 📉 Other income decreased by 26.1% from PKR 680,006 to PKR 502,787.
• ⚠️ Administrative and operating expenses decreased slightly by 4.2% from PKR (4.097) million to PKR (3.924) million.
• ⚠️ Financial and other charges increased significantly from PKR (1,113) to PKR (6,653).
• 📉 Profit before taxation decreased by 43.1% from PKR 2.865 million to PKR 1.631 million.
• 📉 Taxation decreased by 40.5% from PKR (487,043) to PKR (289,813).
• 📉 Profit after taxation decreased by 43.6% from PKR 2.378 million to PKR 1.341 million.
• 📉 Profit per share (basic and diluted) decreased by 45.9% from PKR 0.111 to PKR 0.060.
• 💰 Cash and bank balances decreased significantly from PKR 6.781 million to PKR 1.180 million.
• ⚠️ Accumulated loss increased from PKR (197.673) million to PKR (196.332) million, indicating continued losses.
• ❌ No cash dividend, bonus shares, or right shares were declared for this quarter.
• ⚠️ Net cash used in operating activities was PKR (0.380) million compared to cash generated of PKR 1.840 million in the same period last year.

🎯 Investment Thesis

SELL. The significant decline in revenue and profitability, coupled with negative operating cash flow and increasing accumulated losses, makes GRYL a high-risk investment. The current financial performance does not justify a positive investment thesis. A price target cannot be reasonably established given the negative outlook and the likelihood of continued underperformance. Time horizon: Short to medium term.