Lahore: Emco Industries Limited has reported a decline in profit for the nine months ending March 31, 2025, amidst challenges in the domestic market. The company produced 2,260 tons of porcelain insulators, a decrease from 2,523 tons in the same period last year. However, sales volumes rose to 3,201 tons from 2,726 tons, driven by a strategic reduction in inventory levels to enhance cash flow.

The domestic market faced subdued conditions due to the government's ongoing reorganization of the power sector, resulting in delays and reprioritization of budget allocations for maintenance and new infrastructure projects. Nonetheless, Emco Industries aggressively pursued international markets, leading to export revenues reaching 204% of the full-year export figure from the previous year within just nine months.

Net sales for the period stood at Rs. 2,928 million, compared to Rs. 3,202 million in the same period last year. Gross profit declined to Rs. 552 million from Rs. 881 million. Net operating profit also saw a reduction to Rs. 336 million from Rs. 687 million, reflecting pressure from lower insulator sales and early-stage pricing of new product lines.

According to information available from the Pakistan Stock Exchange (PSX), finance costs were recorded at Rs. 259 million, slightly lower than Rs. 294 million in the previous year. The company reported a Profit Before Tax of Rs. 46 million, compared to Rs. 341 million in the previous year, with Net Profit after tax at Rs. 27 million as opposed to Rs. 222 million last year.

Earnings per share for the period were Rs. 0.77 compared to Rs. 6.33 in the comparable period of last year. The company maintained its schedule for long-term loan repayments, with no outstanding overdues, showcasing disciplined financial management.

In terms of market strategy, Emco Industries is capitalizing on ongoing energy reforms in Pakistan, focusing on efficiency, localization, and private investment. The company is developing higher value-added insulator solutions and substation components to align with national strategies.

Efforts to grow the export business are yielding positive results, with an expanded customer base in North America and Latin America. Emco Industries remains confident that these markets will drive future growth and offset the current slowdown in domestic demand.

The Board of Directors expressed appreciation for the employees, customers, suppliers, and banking partners, emphasizing their role in the company's continued success and resilience.