Treet Corporation (TREET) announced its 2QFY22 financial result today, where the company posted consolidated loss of Rs57mn (LPS: Rs0.31) against consolidated loss of Rs196mn (LPS: Rs1.00) in 2QFY21. The result came In-line with our expectation.

It takes 1HFY22 earnings to Rs341mn (EPS: Rs1.95) against a loss of Rs353mn (LPS: Rs1.98) in 1HFY21.

Revenues of the company increased by 3% YoY in 2QFY22 led by higher prices and volumetric increase in the battery segment.

Gross Margins of the company increased by 1.2ppts YoY to clocked in at 21.3% in 2QFY22. Sequentially gross margin increased by 3.7ppts as the company held inventory at a lower cost.

Other Income has gone negative to Rs104mn possibly due to loss on investments.

Finance cost declined by 4% YoY in 2QFY22 to Rs247mn due to lower borrowing. To note, company has decreased its short term borrowing by Rs2.5bn in 1QFY22 compared to same period last year whose effect has been partially offset by the rise in interest rates.

Courtesy – AL Habib Capital Markets Pvt Ltd