Karachi: Shabbir Tiles and Ceramics Limited has reported its financial results for the second quarter and half-year ended December 31, 2024, with a marked decline in profitability. According to the company's Board of Directors, who convened in Karachi on February 07, 2025, the company has decided against issuing cash dividends, bonus shares, right shares, or any other entitlements for this period.

For the half-year ended December 31, 2024, the company’s net turnover stood at Rs 7.09 billion, a decrease from the Rs 8.43 billion recorded in the same period the previous year. The cost of sales was reported at Rs 5.77 billion, resulting in a gross profit of Rs 1.32 billion, a significant reduction from last year's Rs 2.04 billion.

The financial results also highlighted operational difficulties, with selling and distribution expenses amounting to Rs 1.18 billion and administrative expenses totaling Rs 242.49 million. Additional challenges were noted in the form of allowances for expected credit losses, which stood at Rs 37.10 million.

Despite these challenges, the company reported other income of Rs 62.09 million. However, the operating loss for the half-year was Rs 1.46 billion, compared to a profit of Rs 110.56 million in the corresponding period of the previous year. Finance costs increased to Rs 114.43 million, further impacting the bottom line.

According to information available from the Pakistan Stock Exchange (PSX), the loss before taxation and levy amounted to Rs 203.26 million, in stark contrast to a profit of Rs 515.81 million in the previous year. After accounting for taxation and levy, the company reported a net loss after taxation of Rs 152.57 million, translating to a loss per share of Rs 0.64.

The company's financial position as of December 31, 2024, showed total assets of Rs 7.68 billion, a decrease from Rs 8.16 billion on June 30, 2024. Current liabilities were reported at Rs 4.36 billion, with non-current liabilities at Rs 635.20 million. The overall equity stood at Rs 2.69 billion, reflecting a decline from Rs 3.02 billion reported at the end of the previous fiscal year.

In terms of cash flows, the company generated Rs 882.11 million from operating activities during the first half of the fiscal year, despite a loss before taxation of Rs 203.26 million. However, cash flows from investing activities resulted in a net outflow of Rs 416.07 million, while financing activities saw a net outflow of Rs 326.29 million.

Shabbir Tiles and Ceramics Limited operates within the designated market category of tiles and ceramics, and the financial results highlight the operational challenges faced by the company in the current economic climate.