Karachi: Pak Elektron Limited (PEL) has revealed its financial results for the fiscal year 2024, showcasing a strong performance despite market challenges. The company registered a notable increase in gross sales, reaching PKR 39.9 billion in Q2 2024, a 24% growth from the previous year. This achievement was accompanied by a profit after tax (PAT) of PKR 1.4 billion in the same period, reflecting a 53% growth year-on-year.

PEL's strategic business initiatives have yielded positive outcomes across its operations. According to information available from the Pakistan Stock Exchange (PSX), the company has been successful in doubling its PAT percentage from 1.5% in FY 2022 to 3.1% in FY 2023, and further to 4.7% in FY 2024. These results have been driven primarily by a 46% increase in average prices to counterbalance a 37% currency devaluation, alongside a volume growth that continues to outpace top-line growth.

The company also demonstrated a keen focus on reducing long-term debt, aiming to cut it down by two-thirds by the end of 2024 compared to 2021. This objective aligns with its efforts to optimize cash flow and improve financial health, which saw its working capital as a percentage of net sales value (NSV) reduce significantly across its divisions. In 2024, the total debt is planned to be reduced to PKR 15 billion, down from PKR 23.7 billion in 2021.

PEL has also implemented substantial improvements in its operational efficiencies. The Appliance and Power Divisions have reported reductions in credit days and inventory days, enhancing the cash conversion cycle and supporting robust market leadership. The Power Division, in particular, continues to expand its distribution network, increasing order streams by 5-7% annually.

These strategic measures reflect PEL's commitment to maintaining stability and pursuing growth in challenging economic environments, ensuring sustainable value creation for its stakeholders.