Karachi: Dadabhoy Construction Technology Limited has disclosed a comprehensive financial downturn in its latest filings with the Pakistan Stock Exchange. According to the statement of financial position as of June 30, 2020, the company’s total assets matched its equity and liabilities at 60.00 million rupees, unchanged from the previous year. However, the details of their financial performance highlight significant challenges.

The financial records show a continuous struggle with profitability, with the company reporting an operating loss of 1.26 million rupees for the fiscal year ended 2020, slightly improved from the 8.43 million rupees loss in 2019. According to information available from the Pakistan Stock Exchange (PSX), these losses have led to an accumulated deficit, increasing to 31.52 million rupees, up from 30.12 million rupees in the preceding year. This financial strain is reflected in the statement of changes in equity, where total shareholders' equity decreased notably to a deficit of 8.29 million rupees.

From the cash flow perspective, the statement of cash flows reveals a net cash decrease in operating activities amounting to 25 rupees, marking a modest improvement compared to a reduction of 76,434 rupees in 2019. The company did not engage in any investing activities, and there was no movement in financing activities, indicating a potential stagnation in business operations or caution in financial management.

The earnings per share deteriorated significantly, standing at a loss of 0.60 rupees per share, compared to a loss of 3.65 rupees per share in the previous year. This performance suggests a deepening financial crisis within the company, emphasizing the urgent need for strategic reassessment and potential restructuring to mitigate ongoing financial pressures and stabilize the company’s economic base.