Karachi: Karam Ceramics Limited, a manufacturer of ceramic wall and floor tiles, has reported a loss of Rs. 432.08 million for the year ended June 30, 2024, according to the company's annual report. The loss follows a challenging year marked by a significant increase in costs and a saturated market environment.

The company's revenue increased to Rs. 1.35 billion, up 38% from Rs. 977.13 million in the previous year. However, this was offset by a substantial rise in costs. The cost of sales surged by Rs. 428.40 million to Rs. 1.77 billion, resulting in a gross loss of Rs. 418.78 million, compared to a gross loss of Rs. 361.65 million in the prior year.

Operating expenses, including selling, distribution, and administrative costs, remained stable at Rs. 30.16 million and Rs. 24.93 million, respectively. However, other expenses amounted to Rs. 1.62 million. After accounting for finance costs of Rs. 1.53 million, Karam Ceramics posted an operating loss of Rs. 473.89 million, slightly down from the Rs. 484.52 million reported last year.

According to information available from the Pakistan Stock Exchange (PSX), the loss was driven by increased gas prices, which jumped 145% year-over-year, coupled with inflationary pressures and a saturated market. The company also faced challenges in passing these cost increases onto consumers, contributing to its negative financial performance.

Karam Ceramics has not declared a dividend for the fiscal year. Its loss per share was recorded at Rs. 29.70, down from Rs. 32.65 in the previous year.

The company expressed cautious optimism for the future, noting potential recovery driven by external factors such as Pakistan's arrangements with the International Monetary Fund (IMF) and foreign investments. However, it acknowledged ongoing uncertainty in the market.