Karachi: Ghandhara Tyre and Rubber Company Limited disclosed its financial results for the first quarter ended September 30, 2024, with a noticeable decline in net earnings compared to the previous year. The board meeting, held on October 24, 2024, in Karachi, highlighted several key financial metrics and made pivotal decisions regarding shareholder value distribution.

In Q1 2024, Ghandhara Tyre and Rubber generated sales of Rs 3.86 billion, a decrease from Rs 4.84 billion during the same period last year. The cost of sales also saw a reduction, totaling Rs 3.24 billion compared to Rs 4.08 billion in Q1 2023, leading to a gross profit of Rs 628.80 million, down from Rs 757.39 million year-over-year.

According to information available from the Pakistan Stock Exchange (PSX), administrative and distribution costs remained a significant expense, recorded at Rs 89.68 million and Rs 152.98 million, respectively. Despite lower other income and higher finance costs, which surged to Rs 393.46 million, the company achieved a profit from operations of Rs 420.75 million, albeit lower than the previous year's Rs 547.98 million.

The Board of Directors decided against distributing cash dividends, issuing bonus shares, or rights shares, reflecting a cautious approach amid financial tightening. The Profit and Loss Statement and other comprehensive income details revealed a profit before income tax of Rs 7.79 million, significantly down from Rs 120.21 million in Q1 2023.

The net profit for the period stood at Rs 21.14 million, considerably less than the Rs 69.50 million reported last year, resulting in a diluted earnings per share of Rs 0.17, compared to Rs 0.57 previously. This financial snapshot illustrates a challenging quarter for Ghandhara Tyre and Rubber, marked by lower sales volumes and higher operational costs, impacting the overall profitability of the company.