Karachi: Faisal Spinning Mills Limited reported a significant decrease in its net profits for the fiscal year ending June 30, 2024, as outlined in their recent financial statements. The textile giant recorded a net loss of PKR 1.38 billion, a stark contrast to last year's net profit of PKR 1.49 billion.

The company's financial health has witnessed a downturn over the past year. According to information available from the Pakistan Stock Exchange (PSX), sales rose from PKR 37.67 billion in 2023 to PKR 45.03 billion in 2024. However, this increase was offset by a substantial rise in the cost of sales, up from PKR 33.11 billion to PKR 42.29 billion, leading to a reduced gross profit of PKR 2.74 billion, down from PKR 4.56 billion the previous year.

Further financial stress was evident from increased distribution costs and finance charges. Distribution costs decreased slightly to PKR 1.46 billion from PKR 1.61 billion, while administrative expenses rose to PKR 527.30 million from PKR 423.51 million. The finance cost also surged to PKR 1.61 billion, up from PKR 1.27 billion, impacting the overall profitability.

The statement also reflected a loss in share of profit from associated undertakings, which was a loss of PKR 315.45 million this year, compared to a profit of PKR 170.28 million in the previous year. This contributed to a loss before taxation of PKR 1.52 billion, compared to a profit of PKR 1.39 billion in 2023.

Earnings per share plummeted from PKR 148.89 in 2023 to a loss of PKR 138.38 per share in 2024, highlighting the financial challenges faced by the company in maintaining profitability amid rising costs and economic pressures.