Karachi: Colony Textile Mills Limited has reported a substantial loss in its 2024 financial year, with stark contrasts in performance metrics compared to the previous year, according to the latest financial statements ending June 30, 2024. The textile manufacturer recorded a sharp decline in net sales, which fell from Rs. 20.85 billion in 2023 to Rs. 16.76 billion in 2024.

The company faced a significant downturn in gross profit, reporting a loss of Rs. 2.39 billion in 2024 compared to a gross profit of Rs. 603.46 million in 2023. This downturn is primarily attributed to a considerable increase in the cost of sales, which outpaced net sales growth, amounting to Rs. 19.15 billion in 2024 from Rs. 21.46 billion the previous year.

Operating expenses, encompassing distribution and administrative expenses, totaled Rs. 614.65 million, showing a slight decrease from Rs. 621.46 million in 2023. However, this reduction in expenses did not offset the overall financial strain experienced by the company, resulting in an operating loss of Rs. 3.00 billion in 2024, deepening from an operating loss of Rs. 1.22 billion in 2023.

According to information available from the Pakistan Stock Exchange (PSX), the finance cost for Colony Textile Mills escalated to Rs. 1.55 billion in 2024, up from Rs. 1.05 billion in 2023. The company also faced higher other operating charges, which totaled Rs. 14.88 million, up from Rs. 5.99 million in the preceding year. Despite these increased costs, other income improved, amounting to Rs. 1.57 billion in 2024 compared to Rs. 1.05 billion in 2023.

The pre-tax loss ballooned to Rs. 3.43 billion in 2024, a significant reversal from a pre-tax profit of Rs. 650.92 million in 2023. After accounting for taxation and tax levies, the net loss for the year stood at Rs. 3.64 billion, markedly higher than the net profit of Rs. 824.38 million reported in 2023.

Earnings per share also reflected the company’s downturn, shifting from a profit of Rs. 1.66 per share in 2023 to a loss of Rs. 7.31 per share in 2024. These figures highlight the challenges faced by Colony Textile Mills amid fluctuating market conditions and operational pressures.