Karachi: Biafo Industries Limited has reported a notable shift in its financial performance for the half year ending December 31, 2024, with its net sales volume experiencing both decreases and increases over different periods. According to the company's un-audited accounts, net sales volume for the half year fell by 10.94% to Rs. 1.23 billion compared to Rs. 1.38 billion in the previous year. However, the quarterly sales volume surged by 45.19% to Rs. 573.91 million from Rs. 395.29 million in the corresponding period last year.
The company's financial performance for this period reflects a complex interplay of market dynamics. During the reviewed period, there was a decrease in supplies to large projects and the export sector, yet there was an increase in supplies to the Oil and Gas and mining sectors, driven by heightened exploration and mining activities as compared to December 2023. The company anticipates a potential improvement in sales in the second half of the financial year, attributing this to an expected revival in economic activities and oil and gas exploration.
Despite the boost in quarterly sales, the company's gross profit to sales ratio diminished by 36.21% to Rs. 399.87 million, down from Rs. 626.83 million in the previous year. Net profit after taxation saw a significant decline of 57.24%, amounting to Rs. 176.75 million compared to the prior year's period. This downturn resulted in earnings per share (EPS) dropping to Rs. 2.85 from Rs. 6.66. The decrease in profitability is primarily attributed to increased cost of sales.
According to information available from the Pakistan Stock Exchange (PSX), Biafo Industries did not propose any dividend for the period under review. The company's Board of Directors held a meeting on February 20, 2025, where they decided against declaring a dividend.
The company secured a contract with Reko Diq Mining Company (Private) Limited to supply explosives and provide civil blasting services for pre-mining infrastructure development at the Reko Diq site. Deliveries under this contract are projected to commence within the current financial year. Furthermore, Biafo Industries plans to participate in the tender for operating the actual mine, potentially expanding its market footprint.
The Directors expressed their appreciation for the employees' efforts in overcoming business challenges and fostering the company's growth. Expenses remained within the budget as approved by the Board of Directors, emphasizing the company's commitment to financial discipline.