Karachi: Ideal Spinning Mills Ltd has reported a significant reduction in both revenue and net profit for the first quarter ended September 30, 2024, as detailed in their latest financial disclosure.

In the reported quarter, revenue from contractors with customers dropped to PKR 1.24 billion, down from PKR 1.81 billion in the same period last year, marking a decrease of approximately 31%. The cost of sales also saw a reduction, albeit at a higher previous figure, coming in at PKR 1.13 billion compared to PKR 1.72 billion the prior year.

According to information available from the Pakistan Stock Exchange (PSX), the company's gross profit followed this downward trajectory, settling at PKR 107.58 million, a decline from PKR 83.81 million in the comparative quarter of 2023. Distribution costs and administrative expenses also decreased, noted at PKR 33.61 million and PKR 65.98 million respectively.

Other income for the quarter was recorded at PKR 6.05 million, slightly higher than the PKR 4.53 million from the year before. However, finance costs have increased, totaling PKR 54.36 million up from PKR 58.36 million. The financial strain led to a loss before taxation of PKR 40.91 million, a substantial improvement from the PKR 95.68 million loss reported in September 2023.

After accounting for taxation and levy, the net loss after taxation worsened to PKR 52.91 million, a stark contrast to the net profit of PKR 116.98 million in the previous year. Earnings per share have consequently decreased to PKR -5.33 from PKR 11.79.

The board of directors has not proposed any dividend, right share, or bonus share issuance for the period, signaling caution amidst ongoing fiscal adjustments. This financial downturn reflects broader economic challenges, despite some cost reductions and marginal gains in other income.