Karachi: Thal Limited has reported a downturn in its profit for the quarter ending September 30, 2024, primarily due to increased operational costs and higher financial charges, as per the unaudited financial statements approved by the board on October 29, 2024.

According to information available from the Pakistan Stock Exchange (PSX), Thal Limited's revenue from contracts with customers slightly decreased to Rs. 5.75 billion from Rs. 5.85 billion during the same period last year. The cost of sales showed a marginal increase, amounting to Rs. 5.27 billion, which closely aligned with the previous year's figures.

The company's gross profit significantly reduced to Rs. 81.09 million compared to Rs. 585.58 million in the third quarter of 2023. This decrease in profitability can be attributed to escalated distribution and selling expenses, which rose to Rs. 192.61 million from Rs. 173.85 million, and administrative expenses that jumped to Rs. 357.84 million from Rs. 296.13 million.

Other income for the quarter stood at Rs. 95.70 million, an improvement over last year's Rs. 89.19 million. However, financial costs remained high, with finance charges reaching Rs. 190.13 million compared to Rs. 193.03 million previously, affecting the overall financial health of the company.

The pre-tax profit for Thal Limited was reported at Rs. 391.39 million, a decrease from Rs. 288.78 million in 2023. After accounting for a levy of Rs. 104.57 million and taxation of Rs. 62.47 million, the profit after taxation settled at Rs. 228.92 million, down from Rs. 253.33 million year-over-year.

Earnings per share also saw a decline, with the basic and diluted earnings dropping to Rs. 4.06 from Rs. 3.13 per share.

These results reflect a challenging quarter for Thal Limited amidst a tightening economic environment, impacting both revenue streams and expense management.