Karachi: Financial turbulence hit Power Cement Limited as the company disclosed significant losses for the fiscal year ended June 30, 2024. According to the latest financial statements, Power Cement faced a nett loss of PKR 2.70 billion for the year, a stark contrast to the previous year’s profit of PKR 168.99 million.
The company's revenue from contracts with customers was reported at PKR 31.08 billion, showing a marginal increase from PKR 28.94 billion in 2023. However, escalated costs of sales, which surged from PKR 22.01 billion in 2023 to PKR 24.89 billion in 2024, heavily impacted the gross profit, which slightly improved to PKR 6.79 billion from PKR 6.93 billion a year earlier.
Operational expenses also saw an uptick with selling and distribution expenses and administrative expenses totaling PKR 3.18 billion, compared to PKR 2.33 billion the previous year. Despite an operational profit of PKR 3.03 billion, down from PKR 3.73 billion in 2023, financial costs, including a significant finance cost of PKR 4.95 billion, pushed the company into a loss before income taxation and levy.
The comprehensive income segment also reflected negative figures, primarily due to a substantial PKR 1.32 billion in losses from changes in fair value of cash flow hedges. This financial year further marked a challenging phase with an actuarial loss on remeasurement of defined benefit obligations totaling PKR 33.30 million.
According to information available from the Pakistan Stock Exchange (PSX), Power Cement did not declare any dividends, bonus shares, right shares, or other entitlements for the shareholders this year, underlining the financial constraints. The Annual General Meeting is scheduled for October 24, 2024, at the PSX Auditorium in Karachi and will also be accessible via video-link. Share transfer books will remain closed from October 17 to October 24, 2024.
This financial announcement follows a year of challenging market conditions and operational hurdles, emphasizing the need for strategic adjustments in the coming fiscal periods.