Karachi: Bolan Castings Limited has released its un-audited financial statements for the half-year ending December 31, 2024, revealing a notable decrease in net sales and profit compared to the same period last year. The company's net sales for the six-month period stood at Rs. 854.98 million, a significant drop from Rs. 1.66 billion reported in the previous year. Gross profit also saw a reduction, recorded at Rs. 54.07 million compared to Rs. 301.02 million in the corresponding period last year.
The company reported a loss after tax amounting to Rs. 35.42 million, a stark contrast to the profit after tax of Rs. 115.79 million achieved in the same period of the previous year. The loss per share for this half-year was Rs. 3.09, compared to earnings per share of Rs. 10.09 in the prior year. Production also decreased, with the company producing 1,881 metric tons (M.T.) of castings, down from 3,554 M.T. in the same period last year.
Bolan Castings Limited attributes the decline in performance to lower production and sales volumes during the first half of the financial year. However, the company notes an improvement in its financial condition in the second quarter, driven by favorable economic conditions, such as a reduction in discount rates, easing inflation, and the introduction of the Punjab Government Green Tractor Subsidy Scheme. Despite these improvements, the gains were not sufficient to offset the losses incurred in the first quarter.
According to information available from the Pakistan Stock Exchange (PSX), Bolan Castings Limited's total assets as of December 31, 2024, were valued at Rs. 872.22 million, down from Rs. 987.94 million recorded on June 30, 2024. Non-current assets amounted to Rs. 217.36 million, while current assets were valued at Rs. 654.86 million.
In terms of cash flow, the company reported cash generated from operations of Rs. 1.53 million for the period ending December 31, 2024, compared to Rs. 217.28 million in the previous year. Working capital changes contributed positively, with a decrease in current assets and an increase in current liabilities, leading to a net increase of Rs. 111.53 million.
Bolan Castings Limited's major transactions with related parties included sales of goods worth Rs. 824.18 million to its holding company, Millat Tractors Limited, and the purchase of goods from its associated company, Millat Equipment Limited, amounting to Rs. 208,370.
The directors expressed gratitude to customers and shareholders for their continued trust and confidence in the company, and acknowledged the dedication and hard work of the entire workforce during this challenging period. Bolan Castings Limited remains optimistic about future improvements if the current positive economic trends persist, benefiting the tractors and allied industries in the second half of the fiscal year.