Lahore: In its 2024 annual financial report, D.S. Industries Limited disclosed a challenging fiscal year, marked by increased input costs and a significant downturn in profitability, forcing the company to forgo dividend payments.

The Lahore-based manufacturer, specializing in various textiles, faced a severe hit due to escalating prices of raw materials and other production inputs. Sales for the fiscal year ending June 30, 2024, plummeted to PKR 29.17 million, down from PKR 37.18 million in the previous year. The gross profit mirrored this decline, dropping by nearly half to PKR 7.9 million from PKR 15 million in 2023.

According to information available from the Pakistan Stock Exchange (PSX), the company's pre-tax profit stood at PKR 1.95 million, a sharp decrease from PKR 3.78 million a year earlier. After accounting for deferred tax adjustments, D.S. Industries concluded the year with a net loss of PKR 3.46 million, deepening its accumulated losses to PKR 587.5 million.

Despite these challenges, the company expressed a hopeful outlook, attributing future prospects to macroeconomic conditions and political stability in Pakistan. Management acknowledged the adverse effects of ongoing political turmoil and raw material cost inflation on consumer purchasing power but remained optimistic about a potential normalization of these conditions.

This fiscal strain has prompted D.S. Industries to withhold dividends as it navigates through its financial recovery plan. The company's strategic focus remains on steering through these economic headwinds with an emphasis on enhancing operational efficiency and cost management.

The Annual General Meeting is scheduled for October 28, 2024, where shareholders will convene at the company's registered office in Lahore to deliberate on these financial results and other corporate matters.