Karachi: Towellers Limited released its financial results for the fiscal year ended June 30, 2024, revealing a substantial annual performance with a final cash dividend declared. The Board of Directors, convening on September 26th in Karachi, approved the annual audited financial statements and endorsed a dividend payout amidst various operational updates.

The company announced a final cash dividend of Rs 8 per share, translating to an 80% dividend for the fiscal year. Despite the declared dividend, the company did not issue any bonus shares, right shares, or any other corporate entitlements this year. According to information available from the Pakistan Stock Exchange (PSX), this move aligns with Towellers Limited's strategy to maintain stable shareholder returns amidst varying market conditions.

For the year ended June 30, 2024, Towellers Limited posted net sales of Rs 12,314.92 million, up from Rs 11,086.92 million the previous year. The cost of sales saw a significant rise to Rs 11,082.81 million compared to Rs 7,944.32 million, resulting in a gross profit of Rs 1,232.11 million, a decrease from Rs 3,142.60 million in 2023.

Operating expenses varied, with distribution costs rising to Rs 345.93 million from Rs 298.70 million, and administrative expenses increasing to Rs 398.49 million from Rs 365.25 million. Other operating expenses decreased to Rs 109.11 million from Rs 183.56 million. Additionally, the company reported other income of Rs 457.68 million, higher than the previous year’s Rs 338.88 million.

The profit from operations stood at Rs 836.26 million, a drop from the prior year’s Rs 2,633.97 million. After accounting for finance costs and levies, the profit before income tax was Rs 633.98 million, compared to Rs 2,476.44 million in 2023. The company recorded a net profit of Rs 559.50 million for the year, significantly lower than Rs 2,388.34 million reported last year. Earnings per share also decreased to Rs 32.91 from Rs 140.49.

The Annual General Meeting is scheduled for October 25, 2024, in Karachi. Shareholders registered by October 17 will be eligible for the dividend, with the Share Transfer Book closing from October 18 to October 25, 2024. Transfers completed by the close of business on October 17 at the Company’s Share Registrar will be acknowledged for dividend entitlement.

Towellers Limited's annual report will be disseminated through PUCARS at least 21 days prior to the Annual General Meeting, ensuring compliance and transparency in shareholder communications.