Karachi: D S Industries Limited has disclosed its financial outcomes for the first quarter ending September 30, 2024, revealing a notable rise in profits compared to the same period last year. The company recorded a profit after tax of Rs. 1.57 billion this quarter, a significant increase from Rs. 603.19 million reported during the corresponding period last year.
The company's revenue stood at Rs. 2.12 billion, down from Rs. 9.77 billion in the previous year's first quarter. Despite the drop in revenue, gross profit was Rs. 174.90 million, compared to Rs. 2.08 billion a year earlier. Distribution and administrative expenses decreased to Rs. 309.87 million and Rs. 3.20 billion, respectively, from last year's Rs. 2.56 billion and Rs. 4.45 billion.
According to information available from the Pakistan Stock Exchange (PSX), the profit increase is attributed to significant cost reductions and operational efficiency improvements.
The macroeconomic environment has shown signs of stability, with inflation easing further to an average rate of 9.2% this quarter, down from 13.9% in the previous quarter. This decline is mainly due to reduced global oil prices and lowered food inflation rates. The State Bank of Pakistan responded by cutting the policy rate by 300 basis points to 17.5%. Government securities yields have also declined, indicating an enhanced liquidity scenario and an optimistic inflation outlook.
The continuation of the IMF program is deemed crucial for maintaining macroeconomic stability. The primary challenge ahead is meeting the fiscal targets set, though the overall economic outlook remains positive, with a gradual policy shift expected from stability to growth.
The Board expressed its gratitude towards the shareholders for their continued trust, the customers for their patronage, and the regulatory bodies including the Securities and Exchange Commission of Pakistan and the management of Pakistan Stock Exchange Limited for their support. Special thanks were also extended to the company's employees, whose dedication and hard work have been pivotal in achieving these results.