Karachi: UDL International Limited has reported a significant decline in its financial performance for the first quarter ended September 30, 2026. According to the company's unaudited quarterly report issued on October 30, the figures reflect challenges faced during the period due to external market conditions and internal operational adjustments.
The company, which is engaged in providing legally permissible services and trading, along with offering investment finance services through its subsidiary UDL Financial Services Limited, recorded net sales of Rs. 1.95 million. The gross profit stood at Rs. 0.45 million, with a gross margin of 23.20%. As the business had not commenced operations in the corresponding period of the previous year, no comparative sales figures were available. The company noted that the products are still in the early stages of market establishment, which is expected to require considerable time and effort.
Investment and other income witnessed a very large fall of 76.97% to Rs. 7.91 million, down from Rs. 34.36 million in the corresponding period last year. The decline was attributed to sluggish stock-market performance amid geopolitical tensions in the Middle East. Unrealized losses on investments amounted to Rs. 3.70 million, contrasting with unrealized gains of Rs. 6.44 million in the previous year, indicating a downturn in investment valuations. The total income, inclusive of skincare, was reported at Rs. 4.66 million, showing a very large decline of 88.57% from Rs. 40.81 million in the previous year.
Administrative expenses saw a minor move upwards by 17.14%, reaching Rs. 14.04 million from Rs. 11.99 million, driven by staff increments, higher utility expenses, and increased fuel costs. Selling and distribution expenses were reported at Rs. 1.89 million. The company recorded a net loss after taxation of Rs. 9.48 million, compared with a net profit of Rs. 27.25 million in the corresponding period of the previous year. The unconsolidated loss per share was Rs. 0.27, contrasting with unconsolidated earnings per share of Rs. 0.78 previously.
In consolidated terms, the Group's total income, including skincare, was Rs. 11.83 million, a very large decline of approximately 75.44% from Rs. 48.17 million in the previous year. The subsidiary's income remained largely consistent with the prior year, but the overall decrease in investment income and unrealized losses on investments significantly impacted the total income.
Administrative expenses for the Group increased moderately by 14.48% to Rs. 23.40 million from Rs. 20.45 million. The consolidated loss was Rs. 11.72 million, compared with a consolidated profit of Rs. 26.09 million in the previous year. Consolidated loss per share was Rs. 0.33, a reversal from consolidated earnings per share of Rs. 0.74.
The company's market performance reflects broader economic and geopolitical challenges. According to information available from the Pakistan Stock Exchange (PSX), the market conditions during this quarter have contributed to the financial results reported by UDL International Limited.