Karachi: Dewan Cement Limited reported a significant financial downturn for the fiscal year ended June 30, 2024, with a net loss increasing and auditors raising concerns about the company’s future viability. The financial details were discussed during a recent board meeting at the Dewan Centre, Karachi.

In FY 2024, Dewan Cement saw its net turnover increase slightly to 22.32 billion rupees from 20.20 billion in 2023. However, the cost of sales also rose to 21.93 billion rupees, resulting in a diminished gross profit of 393.93 million rupees, down from 446.89 million the previous year. The company’s operational struggles were reflected in a substantial operating loss of 636.72 million rupees, worse than the 560.64 million loss recorded in 2023.

According to information available from the Pakistan Stock Exchange (PSX), Dewan Cement’s administrative expenses remained high at 873.48 million rupees. The company also reported minimal other operating expenses at 7.88 million rupees. After accounting for finance costs and other income, the pre-tax loss escalated to 611.14 million rupees.

The auditors' report highlighted several critical issues, including questionable classifications of current liabilities and concerns regarding the company’s ability to continue as a going concern due to significant outstanding liabilities related to sales tax, federal excise duty, and withholding tax.

No dividends will be distributed as Dewan Cement navigates its financial challenges. The Annual General Meeting is scheduled for October 24, 2024, in Karachi, with the share transfer books to be closed from October 17 to October 24, 2024. Stakeholders are set to receive scanned copies of the financial statements, complying with PSX regulations, before the AGM.