TRIPF

⚡ Flash Summary

Tri-Pack Films Limited reported a net sales increase of 6% to Rs. 23,283 million for the nine months ended September 30, 2025, driven by an 8% increase in sales volume. Despite the revenue growth, the company reported a loss after tax of Rs. 373 million, influenced by a tax charge of Rs. 241 million pertaining to prior years. Excluding this extraordinary item, the company would have reported a profit at the after-tax level. The company faces future challenges due to the commissioning of another BOPP line in the domestic market, potentially increasing the gap between supply and demand.

📌 Key Takeaways

• ⬆️ Sales volumes increased by 8% compared to the same period last year.
• 💰 Net Sales Value increased by 6% to Rs. 23,283 million.
• 📉 The company reported a loss after tax of Rs. 373 million.
• ❗ A tax charge of Rs. 241 million from prior years significantly impacted the bottom line.
• ✅ Gross margins strengthened due to strategic focus on high-margin export markets.
• 📉 Loss/Earnings per share is (Rs 9.61).
• 💸 Finance costs increased to Rs. 1,967 million.
• ✅ Q3 2025 showed a turnaround with a profit before income tax of Rs. 130 million, compared to a loss in the same period last year.
• 📉 The company reports a loss before income tax of Rs. 158 million versus a profit of Rs 14 million in SPLY.
• ⚠️ Future outlook indicates potential challenges due to new BOPP line commissioning, increasing supply & demand gap.
• 📉 Cash generated from operations improved significantly to Rs. 5,324 million compared to Rs. 1,236 million in SPLY.
• 📉 Net cash used in financing activities is (Rs 4,005) million.

🎯 Investment Thesis

Based on the current financial performance and the expected challenges, a HOLD recommendation is appropriate. The company shows some operational improvements, but the net loss and tax issues create uncertainty. Further monitoring of financial performance and market dynamics is advised before considering a BUY or SELL decision.