Karachi: Pak Leather Crafts Limited has announced a significant financial turnaround for the year ended June 30, 2024, posting a profit after several years of losses. The company’s Board of Directors confirmed these results in their latest meeting, recommending further shareholder rewards and capital structure enhancements.

For the fiscal year 2024, Pak Leather Crafts reported a profit before taxation of Rs. 10.94 million, a substantial recovery from a loss of Rs. 10.21 million in the previous year. This improvement was underpinned by an increase in sales to Rs. 89.39 million, up from Rs. 90.69 million in 2023, according to information available from the Pakistan Stock Exchange (PSX). The cost of sales saw a decrease, contributing to a gross profit of Rs. 12.95 million compared to Rs. 9.59 million the previous year.

Significantly, other income for the company surged to Rs. 13.99 million, from just Rs. 0.11 million in 2023, playing a crucial role in the company’s return to profitability. Administrative, selling, and distribution expenses also saw a reduction, helping to bolster the company's financial health.

In addition to the financial turnaround, the Board of Directors recommended issuing a final cash dividend of Rs. Nil per share and proposed the issuance of bonus shares and rights shares at par. These moves are intended to reward shareholders and strengthen the company’s capital base for future growth.

The financial results reflect a robust recovery and strategic realignment by Pak Leather Crafts as it navigates through the competitive landscape of the leather and leather garments manufacturing sector. The company remains focused on sustaining its profitability and exploring new markets to enhance shareholder value.