Karachi: Towellers Ltd. reported a substantial decline in profit for the first quarter ended September 30, 2024, citing reduced sales and increased taxation as key factors. The company’s quarterly sales dropped to PKR 3.63 billion from PKR 3.90 billion in the same period last year, reflecting a 6.8% decrease, as announced in its financial results released on October 29, 2024.

Towellers Ltd.’s gross profit also saw a reduction, falling from PKR 700.22 million in 2023 to PKR 471.02 million this year. The profit from operations was PKR 281.62 million, down from PKR 485.88 million in the previous year, marking a decrease in operational profitability. According to information available from the Pakistan Stock Exchange (PSX), the decrease in margins was further impacted by heightened tax provisions, including income tax, super tax, and deferred tax, following the company’s shift to a normal tax regime.

The quarterly profit after taxation stood at PKR 177.80 million, a significant decline compared to PKR 503.99 million in the corresponding quarter last year. The taxation expense increased from PKR 76.01 million in 2023 to PKR 103.82 million, reflecting the impact of the company's adjustment in tax classification.

Towellers Ltd. noted that it has undertaken major capital expenditures over the past few years to accommodate future growth, which may lead to higher turnover in subsequent periods. However, the company warned that challenges to profitability remain, given the competitive market conditions and rising business costs.

The board of directors expressed gratitude to shareholders and staff for their continued support amid the current economic conditions. The financial details are available on the PSX platform for further review.