Karachi: In a concerning turn of events, Hamid Textile Mills Limited has reported a substantial loss in its financial performance for the quarter ending September 30, 2024. The detailed financial statement issued to the Pakistan Stock Exchange reveals several critical insights into the company's current economic status.

The textile manufacturer recorded a net sales figure of Rs. 205.56 million this quarter, slightly up from Rs. 200.93 million in the same period last year. However, the cost of sales also surged to Rs. 203.58 million from Rs. 197.94 million, leaving a meager gross profit of Rs. 1.97 million, down from Rs. 2.99 million a year ago.

According to information available from the Pakistan Stock Exchange (PSX), operating expenses have increased notably. Distribution costs rose to Rs. 1.03 million, up from Rs. 0.65 million, while administration expenses escalated to Rs. 8.29 million from Rs. 7.82 million. Consequently, the operating loss worsened to Rs. 7.88 million compared to a loss of Rs. 5.43 million in the previous year.

Adding to the company's financial woes, Hamid Textile faced a finance cost of Rs. 1.13 million, a stark increase from Rs. 0.01 million in 2023. Pre-tax losses have expanded significantly to Rs. 9.02 million from Rs. 5.44 million.

Post-tax calculations show a net loss of Rs. 8.69 million for the quarter, deepening from a loss of Rs. 4.19 million last year. This downturn is reflected in the earnings per share, which deteriorated from a loss of Rs. 0.32 to Rs. 0.66.

This financial snapshot paints a troubling picture for Hamid Textile Mills as it navigates a challenging economic environment. Stakeholders are likely watching closely for potential recovery plans or strategic adjustments as the company aims to stabilize its financial footing.