Islamabad: Elahi Cotton Mills Limited has announced its financial results for the fiscal year ended June 30, 2024. The company held a board meeting in Islamabad on September 25, 2024, to discuss the outcomes, which revealed a stark decline in profitability compared to the previous year.

The company's sales for the year stood at 960.66 million Rupees, a significant increase from last year’s 801.30 million Rupees. However, the cost of sales also rose sharply to 957.92 million Rupees, resulting in a gross profit of just 2.73 million Rupees, down from 26.21 million Rupees in 2023.

According to information available from the Pakistan Stock Exchange (PSX), administrative expenses increased to 14.81 million Rupees while selling and distribution expenses were recorded at 2.02 million Rupees. Other operating charges amounted to 822,394 Rupees, leading to an operating loss of 14.92 million Rupees, a stark contrast to the operating profit of 9.61 million Rupees reported last year.

Further exacerbating the company's financial woes were financial charges totaling 432,139 Rupees and minimal other income of 646,520 Rupees. The cumulative effect resulted in a pre-tax loss of 26.72 million Rupees for 2024, compared to a minimal pre-tax loss of 588,576 Rupees in the prior year.

Elahi Cotton Mills declared no dividends, bonus shares, right shares, or any other corporate actions for the year, reflecting the company's financial struggles. Losses after taxation steepened to 25.74 million Rupees, a significant downturn from the marginal profit of 820,081 Rupees in 2023.

The earnings per share also reflected the downturn, with a loss of 19.80 Rupees per share compared to an earning of 0.63 Rupees per share in the previous year. The company has scheduled its Annual General Meeting for October 25, 2024, and has announced that the Share transfer books will remain closed from October 19 to October 25, 2024.

This financial report indicates a challenging period for Elahi Cotton Mills, as they navigate substantial losses and seek strategies for recovery. The detailed financial statements will be made available on the company’s website and transmitted through PUCAR within the specified timeframe.