Karachi: Dewan Farooque Motors Limited has disclosed its financial results for the first quarter ending September 30, 2024, revealing a substantial net sales increase alongside a significant loss. The report, dated October 26, 2026, highlights the company's continuing financial challenges despite improved sales figures.

The company's net sales for the quarter surged to 196,832,000 rupees from a mere 17,000 rupees during the same period in the previous year. This marks a very large increase in sales, contrasting sharply with the cost of sales, which escalated to 280,964,000 rupees from 43,936,000 rupees. Consequently, the company reported a gross loss of 84,132,000 rupees, significantly widened from last year's 43,919,000 rupees loss.

Operational expenses also saw notable increases, with marketing and distribution expenses rising to 14,631,000 rupees from 6,579,000 rupees, and administration expenses climbing to 21,121,000 rupees from 6,890,000 rupees. This led to an operating loss of 119,884,000 rupees, more than doubling the 57,388,000 rupees loss recorded in the previous year.

The company's financial difficulties are further compounded by other losses amounting to 33,964,000 rupees compared to an income of 2,062,000 rupees last year, and finance costs slightly reduced to 22,000 rupees from 47,000 rupees. The loss before income tax and levies stood at 153,870,000 rupees, with levies amounting to 2,460,000 rupees this quarter, compared to none last year. After accounting for taxation, Dewan Farooque Motors reported a net loss for the period of 156,499,000 rupees, up from 55,373,000 rupees, marking a very large increase in losses.

According to information available from the Pakistan Stock Exchange (PSX), the company's basic and diluted loss per share for the quarter rose to 1.13 rupees from 0.40 rupees in the same period last year, reflecting the financial strain on the company.

As of September 30, 2024, Dewan Farooque Motors' total assets climbed to 4.40 billion rupees from 3.96 billion rupees as of June 30, 2024. Current assets increased to 2.63 billion rupees from 2.17 billion rupees, driven by advances, deposits, prepayments, and other receivables, which rose to 1.44 billion rupees from 1.04 billion rupees.

The company's equity and liabilities have also expanded, with current liabilities reaching 8.23 billion rupees from 7.64 billion rupees. Trade and other payables saw a substantial increase to 1.18 billion rupees from 674.07 million rupees, while short-term loans from related parties rose to 1.86 billion rupees from 1.70 billion rupees.

Despite the revenue growth, Dewan Farooque Motors continues to face formidable financial challenges, as reflected in its escalating losses and liabilities.