Karachi: Kohinoor Spinning Mills Limited has released its financial results for the fiscal year ended June 30, 2024, revealing substantial losses and a decision against declaring any dividends. The company's financials show a deepened loss compared to the previous year, prompting a cautious approach towards shareholder payouts.

The company reported no sales for the fiscal year 2024, a stark contrast to the Rs. 115.44 million in sales recorded in 2023. The cost of sales, though reduced from Rs. 288.04 million in 2023 to zero this year, did not offset the negative impacts on the company’s financial health.

According to information available from the Pakistan Stock Exchange (PSX), Kohinoor Spinning Mills faced increased administrative expenses which surged to Rs. 170.69 million from Rs. 83.97 million the previous year. This increase in overheads, coupled with high finance costs of Rs. 23.27 million and other hefty operating expenses totaling Rs. 220.69 million, pushed the operating losses to mirror administrative costs exactly.

The company's total losses before taxation and levy reached an alarming Rs. 378.47 million, significantly worsening from a loss of Rs. 724.89 million in the previous year. The final loss after taxation stood at Rs. 374.65 million compared to Rs. 376.89 million in 2023, slightly easing but still underscoring a tough financial climate for the mill.

With the operating challenges, the Board of Directors, in a meeting held on October 7, 2024, decided against distributing dividends, issuing bonuses, or rights shares to the shareholders, indicating a strategy of capital preservation amid financial turbulence.

The losses per share also remained consistent year-on-year at Rs. 0.91, reflecting continued pressure on earnings. This financial posture signals the company's ongoing struggles in a challenging market environment and its cautious stance on shareholder value distribution amid uncertain economic conditions.