Lahore: Shahzad Textile Mills Limited announced its financial results for the first quarter ended September 30, 2024, revealing a net loss amidst declining sales and increasing costs. The company's Board of Directors, during a meeting on October 25, 2024, in Lahore, recommended no cash dividend, bonus shares, right shares, or any other entitlements for the quarter.

According to the condensed interim statement of profit or loss, Shahzad Textile Mills' sales decreased to 2,227.07 million rupees from 2,684.23 million rupees compared to the same period last year. The cost of sales also saw a decline, reaching 2,111.93 million rupees from the previous year's 2,553.24 million rupees, resulting in a reduced gross profit of 115.14 million rupees, down from 130.99 million rupees.

Operating expenses increased significantly, with selling and distribution expenses rising to 48.71 million rupees from 27.88 million rupees and administrative expenses surging to 77.30 million rupees from just 0.86 million rupees the previous year. This led to an operating loss of 10.88 million rupees, compared to an operating profit of 29.25 million rupees in the first quarter of 2023.

The finance cost slightly decreased to 33.72 million rupees from 36.12 million rupees, while other operating expenses dropped to 0.29 million rupees from 2.55 million rupees. Other income increased to 36.66 million rupees from 33.93 million rupees. The share of net profit of associate was recorded at 2.96 million rupees, down from 4.10 million rupees last year.

According to information available from the Pakistan Stock Exchange (PSX), the company reported a loss before levy and taxation of 5.27 million rupees, compared to a profit of 28.62 million rupees in the same period last year. After accounting for levy/final taxation and regular taxation, the company recorded a net loss of 28.75 million rupees compared to a net profit of 1.91 million rupees for the previous year. The basic loss per share stood at 1.60 rupees, contrasting with earnings per share of 0.11 rupees in 2023.

The quarterly report will be transmitted separately through PUCARS within the specified time. Shahzad Textile Mills has not disclosed any price-sensitive information for the period.