Lahore, April 23, 2025 — Treet Battery Limited (PSX: TBL) reported a loss for the third quarter of FY2025, ending March 31, despite improvements in cash flow and operational profit. The company’s stock price declined by Rs0.28, or 1.73%, to close at Rs15.90 on April 23, 2025, signaling cautious sentiment among investors.
The un-audited results showed a loss after tax of Rs212.38 million (EPS: -0.24) for the quarter, marking an improvement from the Rs331.26 million loss posted during the same period last year. Despite this reduction in losses, the company faced several financial pressures, including a significant decline in net sales and rising finance costs.
For the three-month period ended March 31, 2025, net sales dropped 40.26% to Rs1.43 billion, down from Rs2.38 billion in Q3 2024. The decline in sales was attributed to market challenges and reduced demand. The cost of sales for the quarter was Rs1.04 billion, contributing to a gross profit of Rs388.84 million, down from Rs451.79 million in Q3 2024.
Operating expenses surged to Rs1.07 billion, up significantly from Rs638.48 million in the same period last year. This increase was driven by higher selling, distribution, and administrative costs. Finance costs for the quarter increased to Rs764.05 million, compared to Rs903.31 million in Q3 2024. While there was a reduction, the costs remain a key burden on profitability. Other income grew to Rs112.95 million, up from Rs76.52 million in the same quarter of the previous year, reflecting positive movement in investment-related returns.
As of March 31, 2025, the company’s total assets stood at Rs12.11 billion, slightly lower than Rs12.81 billion as of June 2024. The equity remained mostly unchanged, with a notable accumulated loss of Rs317.85 million, up from Rs148.60 million as of June 2024. A significant increase in cash and bank balances was recorded, with cash holdings rising to Rs3.15 billion compared to Rs447.79 million at the end of June 2024.
Despite the improved operational cash flow and reduction in the loss, Treet Battery’s stock price experienced a 1.73% decline. Investors seem wary, possibly due to the overall decline in sales and high finance costs, which continue to weigh on profitability. Analysts suggest that while the company’s efforts to improve cost management are evident, there remains a need for significant revenue growth and more efficient debt management to restore investor confidence.
Treet Battery’s management continues to focus on cost control, and the improvement in cash flow and operational profit is encouraging. However, the challenge remains to translate this into sustainable revenue growth. Given the continued pressure from finance costs and macroeconomic conditions, the company’s recovery could take several more quarters.
