Karachi: Ellcot Spinning Mills Limited has disclosed its financial performance for the fiscal year ended June 30, 2024, revealing a notable decrease in profit after taxation compared to the previous year.
The company's annual financial statements, recently released to investors and the public, show a decrease in profit after taxation from PKR 419.74 million in FY 2023 to PKR 152.98 million in FY 2024, marking a significant reduction. The revenue from contracts with customers experienced an increase, totaling PKR 15.51 billion, up from PKR 12.22 billion reported in the previous year. This increase in revenue was offset by a rise in the cost of sales, which escalated to PKR 14.46 billion from PKR 11.18 billion.
According to information available from the Pakistan Stock Exchange (PSX), the gross profit remained relatively stable year-over-year, with a slight increase to PKR 1.05 billion from PKR 1.04 billion. Operating expenses, including selling and distribution as well as administrative expenses, showed mixed trends. Notably, the selling and distribution expenses decreased to PKR 105.86 million from PKR 125.91 million, while administrative expenses also saw a reduction to PKR 226.60 million from PKR 216.76 million.
Finance costs nearly tripled, impacting the net earnings negatively, surging from PKR 188.91 million in FY 2023 to PKR 480.93 million in FY 2024. This considerable increase in finance costs was a significant factor in the reduced profitability.
The company also reported its comprehensive income, which combines both the net income and other comprehensive income, which often includes unrealized gains and losses on investments not sold by the year-end. The total comprehensive income for FY 2024 amounted to PKR 256.44 million, down from PKR 391.16 million in the previous year.
This financial snapshot provides investors and stakeholders with a clear view of Ellcot Spinning Mills Limited’s financial health as it navigates through the fiscal challenges and market dynamics of the textile industry in Pakistan.