Karachi: Ellcot Spinning Mills Ltd. has reported a significant decrease in profitability for the fiscal year ending June 30, 2024, reflecting challenges in the textile sector. The company’s financial results, released on September 30, show a notable decline in both profit margins and sales figures compared to the previous years.

The company’s sales revenue fell to Rs. 15,510.71 million in 2024, down from Rs. 12,224.22 million in 2023. Gross profit for the same period saw a slight increase, reaching Rs. 1,047.13 million, compared to Rs. 1,042.05 million in 2023. The gross profit margin for 2024 stood at 6.75%, a decrease from 8.52% in the previous year.

Profit before tax experienced a substantial decline to Rs. 319.63 million in 2024 from Rs. 614.46 million in 2023. Similarly, profit after tax dropped to Rs. 152.98 million, down from Rs. 419.74 million in the previous fiscal year. Earnings per share after tax also decreased to Rs. 13.97 from Rs. 38.33 in 2023.

According to information available from the Pakistan Stock Exchange (PSX), the cash dividend per share for 2024 was Rs. 6.00, compared to Rs. 10.00 in 2023, resulting in a lower dividend payout ratio of 15.65% in 2024, compared to 8.89% the year before. The dividend yield was recorded at 6.43% for the year, down from 6.14% in 2023.

The market value per share as of June 30, 2024, was Rs. 93.28, a decrease from Rs. 162.99 in 2023. This reflects the broader challenges faced by Ellcot Spinning Mills Ltd. in maintaining its market position amidst fluctuating economic conditions.