In a powerful sign of resurgence, Pak Elektron Limited (PAEL) has reported record-breaking financial results for the calendar year 2024, capping off a year of robust recovery for one of Pakistan’s most prominent electrical equipment and white goods manufacturers. The company’s net revenue soared to Rs53.1 billion – a 37% increase from the previous year – while net profit leapt by a stunning 79% to Rs2.37 billion.
This remarkable performance, particularly given the challenging macroeconomic environment, underscores the resilience of the domestic consumer appliances market and the increasing strength of Pakistan’s industrial base. As the company gears up for continued expansion in 2025, its resurgence holds broader implications for the economic narrative around consumer confidence and export-led industrial growth in Pakistan.
PAEL’s turnaround story in 2024 is nothing short of impressive. Net profit for the year jumped from Rs1.33 billion to Rs2.37 billion, with earnings per share climbing from Rs1.50 to Rs2.72. Gross profits rose by 27%, reaching Rs14.1 billion, despite a marginal dip in gross margins from 29% to 27% due to inflationary pressures and higher input costs.
Revenue growth was well-balanced across its two core segments: the Appliance Division contributed 57% to the topline, while the Power Division accounted for the remaining 43%. The Appliance Division alone reported gross sales of Rs40.1 billion, with another Rs13.1 billion already logged in Q1 of CY25 – signalling strong momentum heading into the new fiscal year.
The recovery of PAEL’s appliance sales is not just a corporate success story – it is also a window into the spending habits of Pakistani consumers. Appliance sales, particularly in categories like refrigerators, air conditioners, and deep freezers, witnessed substantial growth in volume, reflecting increased consumer purchasing power and lifestyle upgrading, especially in urban areas. The content in this publication is expensive to produce. But unlike other journalistic outfits, business publications have to cover the very organizations that directly give them advertisements. Hence, this large source of revenue, which is the lifeblood of other media houses, is severely compromised on account of Profit’s no-compromise policy when it comes to our reporting. No wonder, Profit has lost multiple ad deals, worth tens of millions of rupees, due to stories that held big businesses to account. Hence, for our work to continue unfettered, it must be supported by discerning readers who know the value of quality business journalism, not just for the economy but for the society as a whole.To read the full article, subscribe and support independent business journalism in Pakistan
