Karachi: Avanceon Limited, a leading automation and control systems integrator, reported a challenging yet promising financial performance for the first half of 2024, according to its latest director’s report. The company faced some setbacks in its standalone and consolidated financial metrics, with significant fluctuations in earnings per share and a notable exchange loss.

For the half-year ended on June 30, 2024, Avanceon's consolidated revenue stood at approximately PKR 5.26 billion, down from PKR 5.90 billion in the same period the previous year. The consolidated profit after taxation was PKR 27.88 million, a steep decline from PKR 788.39 million in 2023. On a standalone basis, however, the company saw revenue increase to PKR 1.36 billion from PKR 670.31 million, with profit after taxation rising to PKR 50.28 million from PKR 1.03 billion a year earlier.

The basic earnings per share (EPS) on a consolidated basis was a loss of Rs. 0.01, a significant downturn from a profit of Rs. 1.85 per share in 2023. Standalone EPS improved slightly to Rs. 0.13 from Rs. 2.67 in the prior year.

According to information available from the Pakistan Stock Exchange (PSX), these results reflect a complex financial year influenced by several external and internal factors. The company attributed the reduction in consolidated profits primarily to an exchange loss of PKR 74 million during this period, contrasting with an exchange gain of PKR 2.04 billion in the previous year.

Excluding non-cash exchange gains or losses, the adjusted consolidated profit after tax for HY-2024 was PKR 102 million, compared to PKR 51 million in HY-2023. Similarly, the adjusted standalone profit after tax for HY-2024 improved to PKR 145 million from a loss of PKR 1.01 billion in the prior year.

Avanceon’s management remains optimistic about the future, citing a robust order book of USD 31 million and a healthy pipeline poised to meet year-end targets under the company’s 'Road to 100' plan, aimed at boosting revenues and operational efficiency.

Despite the mixed financial outcomes, Avanceon is confident in its strategic direction and its ability to manage the impacts of economic fluctuations, including those related to currency stability. The company continues to prioritize communication with shareholders, ensuring timely updates through regular financial reporting and maintaining a comprehensive and accessible digital presence.