Karachi: Dewan Farooque Motors Limited has reported its financial results for the year ended June 30, 2025, revealing a substantial financial downturn, according to a statement released following the Board of Directors meeting held on March 24, 2026, at the company’s headquarters in Karachi.
The company’s net sales for 2025 stood at 1.41 billion rupees, a considerable increase from 9,953,000 rupees reported in 2024. However, the cost of sales also surged significantly to 1.71 billion rupees from 292.833 million rupees the previous year, resulting in a gross loss of 300.872 million rupees for 2025 compared to 282.880 million rupees in 2024.
Operating expenses showed a decline in marketing and distribution expenses, which were reduced to 67.183 million rupees from 106.693 million rupees. Administration and general expenses, however, increased to 62.948 million rupees from 38.093 million rupees. The operating loss for the year was reported at 431.003 million rupees, a slight increase from 427.666 million rupees in 2024.
The financial results further highlighted an increase in other losses to 129.152 million rupees from 29.856 million rupees and a finance cost of 553,000 rupees, up from 200,000 rupees. The loss before income tax and levies reached 560.708 million rupees, marking a big move from 457.723 million rupees.
According to information available from the Pakistan Stock Exchange (PSX), the company reported a loss before income tax of 578.274 million rupees, culminating in a total loss for the year of 578.443 million rupees, compared to 457.847 million rupees in the previous year.
The cash flow statement indicated net cash outflows from operating activities at 182.144 million rupees, a significant improvement from 944.910 million rupees outflows in 2024. Investing activities saw outflows of 91.009 million rupees, while financing activities recorded inflows of 420 million rupees, primarily from short-term loans from related parties.
Despite a net increase in cash and cash equivalents of 146.847 million rupees, the company ended the year with a negative balance of 1.76 billion rupees. The auditors have qualified their report regarding the non-provisioning of markup and emphasized concerns over the company’s going concern assumption.
Dewan Farooque Motors Limited has scheduled its Annual General Meeting on April 22, 2026, in Karachi. The share transfer books will remain closed from April 15 to April 22, 2026. The company has complied with regulatory requirements by sending a scanned copy of its financial statements ahead of the AGM.