Karachi: Crescent Fibres, a prominent player in the textile sector, recorded a considerable financial downturn for the fiscal year ended June 30, 2024. According to the financial statements released on the Pakistan Stock Exchange (PSX), the company faced a sharp decline in profitability compared to the previous year.

The company's net sales slightly decreased to 6.50 billion rupees in 2024 from 6.85 billion rupees in 2023. However, the cost of sales rose to 6.75 billion rupees, resulting in a gross loss of 249.32 million rupees, a stark contrast to the gross profit of 29.21 million rupees reported in 2023.

General and administrative expenses also increased to 183.85 million rupees, while distribution costs and allowances for expected credit losses contributed further to the company's expenses. The most notable hit came from other operating expenses which surged to 1.41 billion rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company's operating profit turned into a loss of 444.90 million rupees in 2024, down from a profit of 630.93 million rupees in the previous year. Financial charges remained high at 272.60 million rupees.

Before taxation, Crescent Fibres posted a loss of 796.78 million rupees, exacerbated by a minimum tax differential of 79.29 million rupees. After accounting for taxation benefits, the net loss for the year stood at 758.43 million rupees. This was a significant downturn from the net profit of 375.91 million rupees recorded in 2023.

Earnings per share also reflected the financial challenges, shifting from a gain of 30.27 rupees per share in 2023 to a loss of 61.08 rupees per share in 2024.