Karachi: Ghandhara Automobiles Limited (GAL) reported robust annual results for the fiscal year ended June 30, 2024, demonstrating resilience in a challenging economic landscape.

The company witnessed a significant turnover, achieving net sales of PKR 9.41 billion, according to the consolidated financial statements. The gross profit stood at PKR 1.13 billion, culminating in a net profit of PKR 365 million for the year. The earnings per share were reported at Rs. 6.40.

Despite a generally tough economic environment characterized by high interest rates and inflation, which dampened demand and slowed down large-scale manufacturing, GAL managed to navigate through these obstacles effectively. According to information available from the Pakistan Stock Exchange (PSX), the company's strategic cost reductions and diversification in its product range played pivotal roles in maintaining profitability.

The standalone financial statements painted a contrasting picture, with net sales totaling PKR 5.38 billion and a gross profit of PKR 238 million. However, the company recorded a net loss of PKR 259 million, attributed mainly to the low volumes and high costs of imported materials. The standalone loss per share was Rs. 4.54.

GAL's focus on upgrading existing products and introducing new models was crucial in driving forward its business agenda amidst reduced consumer spending power and stringent import restrictions. Notably, the company's operational strategy was aligned with market demands, particularly in enhancing vehicle quality and diversifying its product offerings to cater to a broader customer base.

The board did not propose a dividend payout this year, choosing instead to reinvest in the company's core business operations to foster growth and ensure sustainability in the coming years.

As the economic landscape begins to stabilize, with the State Bank of Pakistan easing policy rates and a more controlled exchange rate environment, GAL remains optimistic about the future. The company is committed to delivering value to its shareholders and enhancing customer satisfaction through continuous innovation and improvement in its product offerings.