Karachi: Gulshan Spinning Mills Limited reported a significant loss in its financial performance for the first quarter ended September 30, 2024. According to information available from the Pakistan Stock Exchange (PSX), the Lahore-based textile company faced a challenging period marked by a sharp rise in operational costs that outpaced its revenues.

During the quarter, the company achieved sales revenue totaling Rs. 342.43 million, maintaining the level from the same period last year. However, the cost of sales increased marginally, leading to a slight reduction in gross profit from Rs. 4.84 million in the previous year to Rs. 4.92 million.

The financial strain intensified due to a dramatic rise in other expenses, which soared from Rs. 4.04 million to Rs. 9.84 million. This increase contributed to an operating loss of Rs. 17.75 million, a significant downturn compared to an operating profit of Rs. 2.61 million reported in the corresponding quarter of the previous year.

The pre-tax loss stood at Rs. 17.25 million, reversing a pre-tax profit of Rs. 2.42 million from the year prior. After adjusting for tax impacts, the company posted a net loss of Rs. 17.25 million, reflecting the adverse effects of increased costs and a challenging economic environment.

Gulshan Spinning Mills is grappling with rising costs amid a competitive market, impacting its profitability and operational efficiency. The company is focusing on strategic measures to navigate through these economic challenges as it moves forward.