Karachi: Ismail Industries Limited has announced its financial results for the period ending December 31, 2024. The Board of Directors revealed during a meeting held on February 13, 2025, at the company’s Registered Office in Karachi, that there will be no cash dividend, bonus shares, right shares, or any other entitlement for the period.
According to the half-yearly report, which will be transmitted via PUCARS separately, the company demonstrated a remarkable turnaround in its cash flows from operating activities. The cash generated from operations after working capital changes soared to 6.34 billion rupees, a substantial increase from the 806.81 million rupees recorded during the same period in 2023. After accounting for gratuity payments of 154.41 million rupees and net income tax and levies amounting to 1.15 billion rupees, the net cash generated from operating activities stood at 5.03 billion rupees, a significant leap from 45.38 million rupees in the previous year.
Despite the positive operating cash flow, the company saw a considerable outflow in its investing activities. The capital expenditure, including capital work in progress, amounted to 920.04 million rupees. Additionally, a hefty sum of 937.50 million rupees was invested in subsidiaries. The most notable outflow was the 50.52 billion rupees paid for short-term investments. However, proceeds from the disposal of property, plant, and equipment brought in 98.02 million rupees. Consequently, the net cash used in investing activities amounted to 52.28 billion rupees, compared to 4.31 billion rupees in the previous year.
On the financing front, the company leveraged a significant increase in short-term finance, obtaining 60.56 billion rupees net. Despite this, net payments for long-term finances resulted in an outflow of 2.76 billion rupees. Other notable payments included 5.00 billion rupees for Islamic redeemable sukuk and 662.83 million rupees in dividends. This led to a net cash generation of 49.38 billion rupees from financing activities, a stark contrast to the 716.15 million rupees used in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the designated market category for Ismail Industries Limited remains a focal point for investors monitoring their financial performance. The company saw its cash and cash equivalents increase by 2.13 billion rupees, bringing the figure from a deficit of 2.64 billion rupees at the beginning of the period to a current deficit of 511.67 million rupees by the end of the period. Cash and bank balances were recorded at 1.85 billion rupees, while running finances utilized under mark-up arrangements were 2.36 billion rupees.
The financial report reflects Ismail Industries Limited’s strategic approach in navigating through a challenging economic landscape, demonstrating a focused commitment to enhancing its operational cash flows while strategically managing its investment and financing activities.