Karachi: Dadabhoy Construction Technology Limited reported a continuing streak of financial losses in the fiscal year ending June 30, 2022, deepening its accumulated deficits amid static sales and rising administrative costs. According to information available from the Pakistan Stock Exchange (PSX), the company's comprehensive loss widened, signaling ongoing operational challenges.

The construction firm’s financial statements disclosed a net loss of PKR 2.17 billion for the year, a slight improvement from the previous year’s PKR 3.20 billion. Despite the reduction, the underlying financial health of the company remained fragile, with total assets slightly up at PKR 60.13 billion from PKR 60.06 billion a year earlier, primarily due to modest increases in cash and bank balances.

Dadabhoy’s struggles are apparent in its operating performance, with an operating loss of PKR 6.83 billion, which marginally improved from PKR 3.06 billion in 2021. This year's loss was compounded by the lack of sales and a significant sum of administrative expenses totaling PKR 6.83 billion.

The company’s equity position worsened, with total shareholders' equity falling to a negative PKR 13.66 billion, down from negative PKR 11.49 billion in 2021, as accumulated losses grew to PKR 36.89 billion. The current liabilities, including accrued payables and short-term borrowings, also increased, pushing the firm’s financial leverage higher.

In terms of cash flows, Dadabhoy faced a critical drain, with net cash used in operating activities reaching PKR 9.93 billion, a stark contrast to PKR 9.96 billion in the prior year. This financial strain was slightly offset by a minor net increase in cash and equivalents due to better management of working capital changes and short-term borrowings.

The financial challenges facing Dadabhoy Construction Technology Limited highlight the pressing need for strategic adjustments to curb losses and stabilize its financial footing in a competitive construction sector.