KARACHI: Cnergyico PK Limited (PSX: CNERGY) posted a net loss of Rs1.76 billion for the nine months ended March 31, 2025, nearly double the Rs885.88 million loss it reported in the same period last year, despite a sharp increase in top line revenue.
According to the company’s consolidated results, revenue from contracts with customers rose 48.71% year-on-year (YoY) to Rs279.78 billion during the period. After accounting for taxes, levies, duties, and discounts, net revenue stood at Rs218.07 billion, reflecting a 41.31% YoY increase.
However, this revenue growth was outpaced by a 45.61% surge in the cost of sales, which climbed to Rs213.77 billion from Rs146.81 billion a year ago, significantly squeezing margins. As a result, gross profit declined by 42.80% to Rs4.3 billion, down from Rs7.52 billion in the same period last year.
The company’s operating profit also contracted by 59.58% YoY, reaching Rs2.41 billion compared to Rs5.97 billion in the corresponding period. This drop was driven primarily by an 84.77% slump in other income, which fell to Rs356 million from Rs2.34 billion last year.
Administrative expenses increased by 17.76% to Rs1.35 billion, while selling and distribution costs rose by 14.41% to Rs495.48 million. Other expenses declined by 82.61% to Rs401.54 million.
Despite pressure on the operational side, finance costs dropped 47.30% to Rs3.75 billion, compared to Rs7.12 billion last year, reflecting relief from lower benchmark interest rates.
Cnergyico also faced higher final and minimum tax charges of Rs1.24 billion, up 40.03% YoY. However, its income tax expense declined by 28.75% to Rs816.91 million.
The loss attributable to equity holders of the parent company swelled by 100.69% to Rs1.74 billion, up from Rs866.1 million last year. Loss per share for the nine-month period doubled to Rs0.32 from Rs0.16.
Non-controlling interest reported a marginal loss of Rs20 million, nearly unchanged from the previous year.
Despite robust growth in revenue, Cnergyico continues to face profitability challenges due to shrinking margins, falling non-operating income, and ongoing cost pressures.
