Karachi: Pakistan PVC Limited experienced a sharp decline in profitability for the fiscal year ended June 30, 2024, with significant losses recorded across multiple financial metrics. The company's sales dropped to PKR 8.77 billion, down from PKR 11.25 billion in 2023, marking a decrease in revenue generation capabilities.

The gross loss for the year stood at PKR 24.13 billion, compared to a loss of PKR 19.71 billion in the previous year, indicating worsening production cost efficiency. According to information available from the Pakistan Stock Exchange (PSX), this decline was exacerbated by increases in cost of sales, which escalated to PKR 32.90 billion from PKR 30.96 billion.

Despite a decrease in other income to PKR 32.46 billion from PKR 135.57 billion in 2023, the company managed to cut down on distribution and administrative expenses. Distribution costs incurred were PKR 6.27 billion, and administrative expenses totaled PKR 7.27 billion. Finance costs remained relatively stable at PKR 3.64 billion.

The pre-tax loss for the year was PKR 8.96 billion, a stark contrast to a pre-tax profit of PKR 100.58 billion recorded in the prior year. The company did benefit from a positive income tax adjustment, reporting an income tax gain of PKR 4.14 billion, compared to an expense of PKR 11.87 billion in 2023.

Earnings per share plummeted from PKR 5.93 in 2023 to a loss of PKR 0.32 per share in 2024, reflecting the adverse financial performance and challenging market conditions faced by Pakistan PVC Limited within the designated market category of manufacturing and materials sector.