Karachi: Pak Leather Crafts Limited has released its financial results for the first quarter ending September 30, 2026, showing a notable increase in sales but continued operational losses. The company's financial report, dated October 29, 2026, underscores the challenges facing the leather industry despite some positive sales performance.
The report reveals that sales for the quarter reached Rs. 11,047,000, a rise from Rs. 6,548,000 recorded in the same period the previous year. This represents a very large or significant move in sales figures. However, the cost of sales also increased to Rs. 8,356,000 from Rs. 4,774,000, impacting the overall profitability.
Gross profit for the quarter stood at Rs. 2,691,000, compared to Rs. 1,774,000 in the previous year. Other income was reported at Rs. 951,000, contributing to a total of Rs. 3,642,000 in gross earnings for the period.
Despite the rise in sales and gross profit, the company faced increased administrative expenses amounting to Rs. 3,938,000, up from Rs. 3,591,000. Selling and distribution expenses decreased to Rs. 246,000 from Rs. 373,000, and finance costs rose to Rs. 187,000 compared to Rs. 108,000 the previous year.
Operating losses before taxation were reported at Rs. 729,000, an improvement from the Rs. 2,298,000 loss recorded in the corresponding period of 2025. Provision for taxation was reported at Rs. 110,000, up from Rs. 63,000.
The loss for the period amounted to Rs. 839,000, compared to a loss of Rs. 2,361,000 in the same quarter last year. This resulted in a loss per share of Rs. 0.25, compared to Rs. 0.69 in the previous year.
According to information available from the Pakistan Stock Exchange (PSX), the financial performance of Pak Leather Crafts Limited reflects a mixed quarter for the company, with significant sales growth overshadowed by persistent operational challenges.
There was no other comprehensive income reported for the period, leading to a total comprehensive loss of Rs. 839,000, consistent with the net loss figure.
Pak Leather Crafts Limited operates within the leather goods segment, facing challenges related to cost management and operational efficiency, as evidenced by the latest financial results.