Karachi: Karam Ceramics Limited experienced a challenging third quarter in 2024, as detailed in the latest financial statements approved by its Board of Directors on October 29, 2024, in Karachi. The company has faced a substantial decline in revenue alongside deepening losses, despite a cutback in several expense categories.

Karam Ceramics reported revenue of 171.25 million rupees for the quarter ending September 30, 2024, down significantly from 372.66 million rupees during the same period last year. According to information available from the Pakistan Stock Exchange (PSX), this dramatic drop in revenue has severely impacted the company's profitability.

The cost of sales also decreased to 264.82 million rupees from 419.45 million rupees year-over-year, resulting in a gross loss of 93.57 million rupees, compared to a loss of 46.79 million rupees in the previous year. The company managed to reduce its selling and distribution expenses to 2.00 million rupees from 3.03 million rupees, and administrative expenses saw a reduction to 5.32 million rupees from 7.12 million rupees.

However, these cost-cutting measures were insufficient to offset the revenue shortfall, leading to an operating loss of 100.90 million rupees, worsening from a loss of 56.94 million rupees a year earlier. The company's finance costs slightly decreased to 0.54 million rupees from 2.20 million rupees.

After accounting for a levy and provision for taxation, Karam Ceramics posted a net loss of 98.98 million rupees, deepening from a loss of 62.99 million rupees in the previous year. Earnings per share also deteriorated, with a loss of 6.80 rupees per share compared to a loss of 4.33 rupees per share in the prior year.

Karam Ceramics continues to navigate a difficult market environment, with no dividends or rights shares issued as part of their strategy to stabilize the company's financial position.