Lahore: D.S. Industries Limited has disclosed its financial performance for the half-year ending December 31, 2024, revealing a contrast between declining sales and increased profitability. The company reported net sales of Rs. 3.09 million, a significant drop from Rs. 16.27 million in the same period the previous year. Despite the decrease in sales, the company achieved a net profit after tax of Rs. 7.76 million, a substantial increase from Rs. 2.00 million in the corresponding period of the previous year. The earnings per share also rose to Rs. 0.09 from Rs. 0.02 over the same timeframe.

The company faced a gross loss of Rs. 79,505 for the period under review, compared to a gross profit of Rs. 5.11 million from the previous year. According to information available from the Pakistan Stock Exchange (PSX), these figures indicate a shift in the company's financial dynamics, with profitability being maintained despite revenue challenges.

The auditor's report accompanying the financial statements includes a qualified opinion concerning the recognition of a deferred tax asset on unused losses, amounting to Rs. 68.92 million. The report highlights that there is no convincing evidence that sufficient taxable profits will be available in the future to utilize these losses. The company, however, maintains confidence in its projections for future earnings to justify this recognition.

The company's future outlook indicates a stabilization in economic conditions, with Pakistan's GDP growth projected at 3% for fiscal year 2025 and 4% for fiscal year 2026. Inflation is expected to remain between 5% and 6% in fiscal year 2025. Key macroeconomic indicators such as declining inflation, stable interest rates, and a stable rupee provide some optimism, although the company acknowledges persisting challenges.

Cash flows from operating activities showed a net use of Rs. 415,461 compared to a use of Rs. 2.24 million during the same period last year. Investing activities generated a net cash flow of Rs. 4.71 million, primarily due to proceeds from the disposal of property, plant, and equipment. Financing activities resulted in a net cash outflow of Rs. 829,860.

The financial statements were approved by the Board of Directors on February 25, 2025, and have been prepared on a going concern basis despite the company's accumulated losses of Rs. 579.74 million as of December 31, 2024. The directors expressed gratitude to shareholders, customers, the Securities & Exchange Commission of Pakistan, and the management of the Pakistan Stock Exchange for their support and guidance.