Karachi: Bhanero Textile Mills Limited has released its financial results for the fiscal year ended June 30, 2024, detailing a notable decline in profitability compared to the previous year.

The company recorded a total sales revenue of Rs. 33.06 billion, up significantly from Rs. 18.55 billion in 2023. Despite the increase in sales, the company experienced a sharp rise in the cost of sales, which surged to Rs. 30.02 billion from Rs. 15.55 billion the year prior, leading to a gross profit of Rs. 3.03 billion, only marginally higher than last year’s Rs. 2.99 billion.

According to information available from the Pakistan Stock Exchange (PSX), other income for the company decreased from Rs. 317.23 million in 2023 to Rs. 128.31 million in 2024. This decline in other income sources contributed to the company's strained financial performance this year.

Operational expenses also saw significant changes; distribution costs more than doubled to Rs. 757.12 million, and administrative expenses increased to Rs. 335.71 million. The company also faced a substantial increase in finance costs, which rose dramatically to Rs. 1.87 billion from Rs. 745.27 million, reflecting higher borrowing costs and possibly increased leverage during the year.

The combined effect of rising costs and expenses left the company with a profit before levies and taxation of Rs. 169.67 million, a sharp decrease from Rs. 1.78 billion in the previous year. After accounting for levies and taxation, the company reported a net loss of Rs. 131.76 million for the year, compared to a profit of Rs. 1.58 billion in 2023.

Earnings per share also turned negative, with both basic and diluted earnings per share reported at a loss of Rs. 43.36, down from earnings of Rs. 527.16 and Rs. 520.06, respectively, in the previous year.

This financial turnaround poses significant challenges for Bhanero Textile Mills, as it navigates a tougher economic environment marked by increased operational costs and financial charges.