Multan: Fazal Cloth Mills Limited (FCML) has disclosed its financial results for the year ended June 30, 2024, along with key decisions on profit allocation and future dividends, in a statement issued to the Pakistan Stock Exchange.

According to the statement dated September 30, 2024, the company reported a revenue of PKR 97.16 billion for the fiscal year, with a net profit after tax of PKR 1.79 billion. The gross profit stood at PKR 11.02 billion, but the net profit was significantly impacted by various operational costs and a high finance cost of PKR 1.84 billion.

In a strategic move to solidify its financial base for further expansion, the board has decided to transfer PKR 15.00 billion from its unappropriated profits - revenue reserves to a newly formed capital reserve. This fund is earmarked specifically for capacity expansion and will not be available for dividend distribution. According to information available from the Pakistan Stock Exchange (PSX), this reclassification reflects the company’s intent to support sustained growth and shareholder value through reinvestment in its operations.

The company also announced that its share transfer books will be closed from October 18, 2024, to October 26, 2024, during which no transfer of shares will be processed. The Annual General Meeting (AGM) is scheduled for October 26, 2024, where shareholders are expected to approve the year’s financial outcomes and the board’s recommendation on dividends and capital allocation.

The financial results indicate a solid performance despite economic pressures, with a basic and diluted earnings per share of PKR 59.51 for 2024. These results are set against a backdrop of an aggressive expansion strategy and the company’s cautious approach to dividend distribution in light of ongoing investments in its operational capacities.