⚡ Flash Summary

Pace (Pakistan) Limited reported its condensed interim unconsolidated financial results for the quarter ended September 30, 2025. The company’s revenue decreased significantly to Rs 151.567 million compared to Rs 474.139 million in the same quarter last year. However, the profit after taxation was significantly higher at Rs 362.148 million compared to Rs 156.870 million in 2024. The earnings per share (basic and diluted) also increased to Rs 1.30 from Rs 0.56.

📌 Key Takeaways

• Revenue decreased significantly by 68% to Rs 151.567 million compared to Rs 474.139 million year-over-year. 📉
• Gross profit decreased to Rs 86.704 million from Rs 222.673 million in the previous year. 📉
• Other income increased significantly to Rs 363.769 million from Rs 9.703 million year-over-year. 🚀
• Profit from operations increased significantly to Rs 370.488 million from Rs 192.645 million year-over-year. 📈
• Finance costs increased to Rs 49.337 million from Rs 39.866 million in the previous year. 💸
• Exchange gains were Rs 42.892 million compared to Rs 11.009 million year-over-year. 💹
• Profit before income tax and minimum taxes increased significantly to Rs 364.043 million from Rs 162.796 million year-over-year. 🌟
• Profit after taxation increased significantly to Rs 362.148 million from Rs 156.870 million year-over-year. 🎉
• Basic and diluted earnings per share increased to Rs 1.30 from Rs 0.56 year-over-year. 🚀
• The Board has approved the issuance of up to 1,300 million ordinary shares at Rs. 10.00 per share to Pace Barka Properties Limited, subject to regulatory approvals. 🤝
• These new shares cannot be sold on the market for two years after issuance. 🔒
• The Board approved acquiring Pace Circle Project from Pace Barka Properties Limited, with fair value to be determined by a registered valuer. 🏢

🎯 Investment Thesis

HOLD. The company’s increased profitability and EPS are encouraging, but the decline in revenue raises concerns about its long-term sustainability. The potential issuance of new shares could dilute existing shareholders’ value, but the Pace Circle Project acquisition could offer future growth opportunities. A more detailed analysis of the sources of ‘other income’ and the financials of the Pace Circle Project is needed before making a stronger recommendation.