Karachi: Thal Limited has unveiled its financial performance for the period ended September 30, 2024, showcasing mixed outcomes across its various business segments. The Directors' Review revealed unconsolidated net revenue of Rs. 5.75 billion, a slight decline from Rs. 5.85 billion in the same period last year, and a consolidated net revenue increase from Rs. 6.09 billion to Rs. 6.50 billion.
According to information available from the Pakistan Stock Exchange (PSX), the company experienced varied performance across its two main operating segments: engineering and packaging, building materials and allied products. The engineering segment, which includes the Thermal and Engine Components Division and the Electric Systems Division, reported a revenue increase of 22% to Rs. 3.0 billion. This boost is attributed to improved conditions in the automotive sector, facilitated by stable exchange rates and a reduction in inflation.
In contrast, the packaging, building materials and allied products segment faced significant challenges, with turnover dropping 19% to Rs. 2.8 billion. The decline was particularly acute in the Jute Division, where sluggish demand, intense competition, and logistical challenges due to the closure of the Red Sea adversely affected performance.
Despite these sector-specific setbacks, Thal Limited reported an overall increase in profits. The unconsolidated profit before taxes rose to Rs. 496 million from Rs. 361 million, while consolidated profits after taxes slightly increased to Rs. 2.34 billion from Rs. 2.33 billion. The earnings per share on a consolidated basis decreased slightly from Rs. 26.13 to Rs. 25.21.
Looking forward, Thal Limited remains optimistic about the recovery of its export business and continued improvement in the automotive sector. The company is actively pursuing diversification and expansion strategies, including new business opportunities with original equipment manufacturers and increased focus on exports in the packaging division. Strategic efforts in the laminates division, like electricity generation under the net metering system, are enhancing cost-efficiency and aligning with sustainability goals.