Karachi: Karam Ceramics Limited, a prominent player in the ceramics industry, has reported another year of financial losses, primarily driven by high energy costs and intense competition from Chinese manufacturers. The company's financial performance for the fiscal year 2024 shows a decline in sales and profitability, continuing a trend seen in recent years.

According to the company's financial highlights, sales for 2024 amounted to 1,348 million rupees, a modest increase from 977 million rupees in 2023. However, the gross profit for 2024 was recorded at a loss of 419 million rupees, compared to a loss of 362 million rupees in the previous year. The expenses, net of income, stood at 58 million rupees, down from 126 million rupees in 2023.

Karam Ceramics Limited's profit before taxation in 2024 was a loss of 474 million rupees, slightly better than the 484.50 million rupees loss recorded in 2023. The profit after taxation was a loss of 432.08 million rupees, compared to a loss of 471.96 million rupees in the previous year. The company's earning per share for 2024 was reported at a negative 29.70 rupees.

According to information available from the Pakistan Stock Exchange (PSX), the company faces significant challenges in the current market environment. High energy costs have been a substantial burden on operational profitability. Competition from Chinese manufacturers, who benefit from government-provided tax advantages, has also created a competitive disadvantage for Karam Ceramics Limited.

Additionally, the company is grappling with a challenging economic environment that affects consumer spending and industry growth. The sluggish construction industry has further compounded these difficulties, leading to reduced demand for tiles.

Despite these challenges, the company had previously declared dividends, with the most recent payout being 5 percent. However, no dividends were announced for the current fiscal year.

As Karam Ceramics Limited continues to navigate these market challenges, its financial performance underscores the difficulties faced by the ceramics industry in Pakistan. The company remains focused on addressing these issues to improve its financial standing in the coming years.