Karachi: Dynea Pakistan Limited has reported a significant decrease in its profits for the first quarter ended September 30, 2024, according to the latest directors' report. The company recorded a pre-tax profit of PKR 248.00 million and an after-tax profit of PKR 152.00 million, down from the PKR 567.00 million and PKR 345.00 million respectively, achieved in the same period last year. The basic and diluted earnings per share also fell to PKR 8.05 from PKR 18.30.

During the quarter, the Resin Division experienced a notable decline in sales revenue, which dropped by 29.65% to PKR 799.00 million from PKR 1.14 billion. According to information available from the Pakistan Stock Exchange (PSX), this downturn reflects broader market challenges. In contrast, the Moulding Compound Division saw a modest revenue increase of 4.09%, with sales rising to PKR 2.07 billion from PKR 1.99 billion.

Looking ahead, the company remains cautiously optimistic about the economic environment. With the implementation of the latest International Monetary Fund (IMF) loan conditions, there is hope for continued and strengthened economic recovery. However, both inflation and interest rates need to further reduce to restore market confidence fully. Until such improvements take hold, sales are expected to remain subdued, with consumer spending on non-essentials currently paused.

The directors expressed gratitude for the support and confidence shown by shareholders, customers, financial institutions, and other stakeholders during these challenging times. There are early signs of loosening in consumer spending restraints, and the company anticipates an improvement in sales extending into early 2025.