Karachi: Agritech Limited, a prominent entity in the agricultural sector, has reported a significant loss in its financial performance for the third quarter ended September 30, 2024. According to the document released to the Pakistan Stock Exchange, the company has faced mounting losses, marking a downturn in its profitability.

For the nine months ending September 30, 2024, Agritech Limited disclosed a net sales revenue of 19.08 billion rupees, a noticeable increase from the 13.91 billion rupees reported in the same period last year. Despite the rise in sales, the cost of goods sold escalated to 15.63 billion rupees from 11.52 billion rupees, undermining the growth in revenue.

The gross profit stood at 3.39 billion rupees, compared to 2.24 billion rupees in the previous year. However, increased operating expenses, including selling and distribution costs of 0.66 billion rupees and administrative expenses of 0.65 billion rupees, eroded the profit margins. Other expenses and finance costs further compounded the financial strain, resulting in an operating profit of 3.00 billion rupees for the nine months period, an improvement over the 1.51 billion rupees from the prior year.

According to information available from the Pakistan Stock Exchange (PSX), the financial results highlight the company's struggle with profitability. Agritech reported a substantial pre-tax loss of 2.17 billion rupees for the nine-month period, significantly worse than the 3.03 billion rupees loss recorded in the corresponding period last year. After accounting for taxations, the net loss deepened to 2.08 billion rupees, translating into a loss per share of 4.91 rupees.

The third-quarter performance alone reflects a dire situation, with a quarterly loss of 908.06 million rupees before taxation, and a net loss of 849.79 million rupees after taxes. This marks a considerable shift from a modest profit in the same quarter of the previous year.

In conclusion, while Agritech Limited has seen an increase in sales, escalating costs and substantial financial expenses have led to deteriorating net results. The company, however, remains committed to addressing these challenges as it navigates through the fiscal year.