Karachi: Dewan Khalid Textile Mills Limited has reported significant financial losses for the half-year period ending December 31, 2023, as revealed in their unaudited, condensed interim financial statements. The Board of Directors met on October 14, 2025, to discuss the financial outcomes and recommendations. The board did not propose any cash dividends, bonus shares, right shares, or other entitlements, indicating a challenging financial position for the company.

The company's financial results outline a gross loss of 16.09 million rupees for the half-year, with operating losses reaching 19.88 million rupees. The finance costs were noted at 4.70 million rupees, contributing to a pre-taxation loss of 22.04 million rupees. After accounting for deferred taxation, the loss after taxation stood at 20.03 million rupees. The loss per share was calculated at 2.08 rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company's financial position has shown no improvement in terms of dividends or share entitlements. The textile sector, under the designated market category, continues to face hurdles, reflected in Dewan Khalid's performance metrics. Operating expenses were slightly reduced, with administrative and general expenses recorded at 3.79 million rupees, compared to the previous year's 4.53 million rupees.

The financial position as of December 31, 2023, indicates a reduction in non-current assets, with property, plant, and equipment valued at 748.65 million rupees, down from 764.10 million rupees as of June 30, 2023. Current assets also decreased to 16.54 million rupees from 18.07 million rupees.

The statement of cash flows highlighted a minor move in operating cash flow activities, with a net cash inflow of 351,262 rupees compared to a net outflow of 3.85 million rupees in the same period the previous year. The company's efforts to manage working capital have resulted in a slight positive impact on cash and cash equivalents, which increased to 1.14 million rupees from 791,482 rupees at the start of the period.

Despite these efforts, Dewan Khalid Textile Mills continues to grapple with accumulated losses, which have risen to 880.93 million rupees, further complicating the path to financial recovery. The company's capital reserves, including the revaluation surplus on property, plant, and equipment, decreased to 670.46 million rupees, reflecting ongoing depreciation and financial strain.