Karachi: The Board of Directors of Dewan Salman Fibre Limited has released the un-audited Condensed Interim Financial Statements for the first quarter ending September 30, 2026, as per the requirements of section 237 of the Company's Act 2017. The financial report, dated October 28, 2026, highlights significant challenges faced by the company, including a loss after taxation of Rs. 10.399 million.
The company reported no net sales during the quarter, mirroring the same performance from the previous year. The cost of sales stood at Rs. 57.497 million, leading to a gross loss of the same amount. Operating expenses were recorded at Rs. 18.410 million, contributing to an operating loss of Rs. 75.908 million. The finance cost and other income together accounted for a negative Rs. 55.519 million, resulting in a loss before taxation of Rs. 20.389 million. After accounting for taxation of Rs. 9.990 million, the net loss was Rs. 10.399 million.
The company's management has attributed the continued suspension of plant operations to inadequate working capital. Despite these operational challenges, the management remains committed to resuming operations and is actively exploring potential avenues to restart the manufacturing facility, which is considered the largest of its kind in the country.
According to information available from the Pakistan Stock Exchange (PSX), the company's financial performance reflects ongoing litigation with lenders, which the management is optimistic about resolving favorably through competent courts.
The global Polyester Staple Fibre (PSF) market experienced price volatility during the quarter, influenced by rising crude oil and feedstock costs, higher freight charges, and production curtailments, particularly in China. The Chinese PSF benchmark prices saw a very large increase of 20.9% over the quarter. In Pakistan, the PSF market faced challenges from international price movements, import competition, and currency exchange rate fluctuations, affecting local producers' competitiveness.
Dewan Salman Fibre Limited's operations remain suspended due to the cited financial difficulties, and the management is focusing on litigation and exploring possible solutions to improve the company's financial health.