Karachi: Dadabhoy Construction Technology Limited has disclosed a comprehensive financial downturn in its 2021 fiscal year-end reports, marked by escalating losses and a significant depletion in cash flow from operations. The financial documents reveal a total comprehensive loss of PKR 3.20 billion for the year ended June 30, 2021.

The company's statement of financial position as of June 30, 2021, indicated that total assets remained stable at PKR 60.06 billion, a slight increase from PKR 60.00 billion in 2020. However, total equity and liabilities reflected an adverse movement, with shareholders' equity plummeting by nearly PKR 3.20 billion.

According to information available from the Pakistan Stock Exchange (PSX), Dadabhoy Construction's performance in the profit and loss segment also underlined a challenging year with no recorded sales and an operating loss of PKR 3.06 billion. This loss was further compounded by the company's net cash used in operating activities, which totaled approximately PKR 10.00 million, as shown by their statement of cash flows.

The balance sheet deterioration was primarily due to significant losses in its operations and an increase in current liabilities, which offset the absence of significant sales revenue and led to an increased cash outflow. The company’s finance costs and administrative expenses, although somewhat consistent with the previous year, contributed to the negative financial outcome.

Dadabhoy Construction's loss per share further declined to PKR 1.38 in 2021 from PKR 0.60 in 2020, emphasizing the company's escalating financial distress. These financial challenges underscore a pivotal year for the company as it navigates through a period of strategic reassessment and potential restructuring.