Karachi: Pak Leather Crafts Limited has released its financial results for the fiscal year ending June 30, 2026, revealing a notable downturn in sales and a corresponding increase in losses. The company reported a total comprehensive loss of Rs. 5,331,684 for the year, compared to a profit of Rs. 9,022,605 in the previous year. This represents a very large or significant move in the company's financial performance.

The company's statement of financial position indicated a decrease in total assets, amounting to Rs. 67,025,022, down from Rs. 77,553,849 in the previous fiscal year. Non-current assets saw a slight increase, while current assets experienced a decline, primarily due to reductions in stock in trade and advances and other receivables.

In terms of equity and liabilities, the company's issued, subscribed, and paid-up capital remained constant at Rs. 34,000,000. However, there was a substantial loan from directors amounting to Rs. 117,376,890. The revenue reserve reflected accumulated losses of Rs. 358,685,878, up from Rs. 353,354,194 in the prior year.

The income statement revealed a sharp decline in sales, dropping from Rs. 60,093,955 to Rs. 26,777,272, marking a very large or significant move. The gross profit also fell from Rs. 16,642,230 to Rs. 3,967,575. Despite an increase in other income, the company reported an operating loss of Rs. 3,120,052 compared to an operating profit of Rs. 10,131,222 the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's financial struggles were further highlighted by an increase in administrative expenses and a reduction in selling and distribution expenses. The finance cost also declined, yet the loss before taxation stood at Rs. 4,877,121, compared to a profit before taxation of Rs. 9,182,898 in the prior year.

The company's earnings per share dropped to a negative Rs. 1.57 from a positive Rs. 2.65, reflecting the challenging financial year Pak Leather Crafts Limited faced. The significant downturn in sales and increased losses underscore the company's current financial difficulties in the designated market category.