Gandhara Automobiles Posts Rs1.8B Net Earnings
Ghandhara Automobiles Limited (GAL) announced 4QFY25 results on Monday, wherein the company posted consolidated net earnings of Rs1.8bn (EPS Rs32) compared to net earnings of Rs290mn (EPS Rs5.1) in the same period last year.
The result came lower than our expectations due to lower-than-expected revenue and higher other expenses. The company also announced final cash dividend of Rs 10/share. Pakistan Car Sales in May 2023 Witness Mixed Performance
In 4QFY25, the earnings performance was supported by a sharp increase in sales to Rs19bn (up 6xYoY), primarily driven by the newly launched T-9 truck (around 1,500 units sold) along with higher sales of JAC trucks & pickups of 512units (up 79%YoY). Moreover, we believe the Dongfeng trucks posted sales growth of 2.8xYoY to 294 units.
Gross margins improved to 17% (up 3pptYoY), driven by a favorable sales mix— particularly the increase in Dongfeng truck volumes, which carry higher margins.
Other income stood at Rs364mn (up 4.5xYoY) mainly due to higher advances from T-9 bookings. Operating expenses surged to Rs1bn in 4QFY25 compared to Rs158mn in 4QFY24, largely on account of an increase in sales volumes. Moreover, expenses were further elevated by a one-off fixed asset write-off of Rs 397mn during the quarter.
In FY25, the company posted consolidated EPS of Rs 72, compared to Rs 6.4 in FY24, primarily driven by a 3.7x increase in revenue to Rs 34 bn due to higher volumetric sales, a 6ppt YoY expansion in gross margins to 18%, a rise in other income, and a 60% reduction in finance cost due to lower borrowings.
