Karachi: Kohinoor Mills Limited has disclosed a significant drop in profit after taxation for the quarter ending September 30, 2024, amid challenges of increased operational costs and substantial financial expenses. The detailed financial results reveal both gains in revenue and setbacks in net earnings, as confirmed by the company's latest statements to the Pakistan Stock Exchange.

For the quarter, Kohinoor Mills achieved a revenue of 7.02 billion rupees, up from 7.57 billion rupees in the corresponding quarter of 2023. Despite the higher revenue, the company faced a sharp increase in cost of sales, rising to 6.09 billion rupees from 6.06 billion rupees year-over-year, which narrowed the gross profit to 929.98 million rupees from 1.52 billion rupees in the previous year.

According to information available from the Pakistan Stock Exchange (PSX), the company's operational struggles were further highlighted by a rise in administrative expenses to 341.62 million rupees, up from 349.61 million rupees, coupled with other expenses totaling 521.91 million rupees. These factors contributed to a stark reduction in profit from operations, which plummeted to 42.59 million rupees from 49.89 million rupees.

Finance costs stood at 365.21 million rupees, a decrease compared to last year's 474.78 million rupees, providing some relief. However, this was not enough to counteract the overall financial downturn, as profit before taxation fell drastically to 85.34 million rupees from 463.09 million rupees a year earlier.

The company's net profit after taxation concluded at 10.88 million rupees, significantly down from 382.56 million rupees reported in September 2023, marking a critical downturn in its financial health. Earnings per share also reflected this decline, dropping to 0.21 rupees from 7.51 rupees per share last year.

Kohinoor Mills pointed to various operational and market challenges that impacted their performance, despite steady revenue figures. The company's board is actively engaging in strategies to mitigate these financial pressures, aiming to stabilize earnings in the upcoming quarters.