Karachi: According to the latest Directors' Review from Baluchistan Glass Limited, the company reports a substantial operational and financial downturn for the quarter ended September 30, 2024. In a detailed comparison with the previous year, the company disclosed a net sales decrease to Rs. 409.05 million from Rs. 6.46 billion, along with a significant increase in losses, citing operational halts and inflationary pressures.
The financial report from Baluchistan Glass Limited highlights a profound decline in performance with a net sales drop from Rs. 6.46 billion in 2023 to Rs. 409.05 million in 2024. This drastic reduction is primarily due to the prolonged closure of their tableware glass production, which has been inactive since May 2022. According to information available from the Pakistan Stock Exchange (PSX), the company recorded a gross loss of Rs. 129.49 million and an operating loss of Rs. 157.62 million during this period.
The company's decision to halt production was strategically aimed at addressing the operational challenges and financial difficulties exacerbated by global economic conditions. Despite these setbacks, the Hub, Baluchistan-based Unit-1 was commercialized in June 2024, focusing on diversifying production to include types of glass such as tableware, bottles, container ware, and amber glass packaging for the pharmaceutical sector.
The management is currently undertaking significant steps to improve both operational and financial outcomes, with a primary focus on revamping the balance sheet. Notably, an extraordinary general meeting held on July 20, 2024, approved an increase in the company’s authorized share capital from PKR 2.67 billion to PKR 7.00 billion. This includes the issuance of additional ordinary shares and the conversion of a major loan into equity, pending approval from the Securities and Exchange Commission of Pakistan (SECP).
Furthermore, the company is grappling with increased production costs due to a 100% hike in gas prices and limited gas supply, which has forced them to resort to more expensive energy sources like furnace oil and diesel. This situation has compounded the challenges faced by Baluchistan Glass, leading to suboptimal production efficiencies.