Karachi: Sardar Chemical Industries Limited, a prominent entity in the chemical manufacturing sector, has released its financial performance for the fiscal year ending June 30, 2025, showcasing an increase in sales but a decline in profitability. According to the company’s latest financial statement, net sales rose to Rs. 533.86 million from Rs. 503.87 million in 2024. However, the company reported a decrease in its gross profit to Rs. 148.40 million from the previous year’s Rs. 175.51 million.
The operating profit also saw a downturn, amounting to Rs. 65.79 million compared to Rs. 90.32 million in 2024. The decline in operating profit is primarily attributed to increased cost of sales, which totaled Rs. 385.46 million, up from Rs. 328.36 million in the previous year. Despite these challenges, Sardar Chemical’s profit before tax reached Rs. 53.45 million, a decrease from Rs. 76.98 million in 2024. The profit after tax also showed a decline, standing at Rs. 45.60 million, down from Rs. 52.33 million, reflecting a net profit margin of 8.54%, classified as a moderate move.
According to information available from the Pakistan Stock Exchange (PSX), the company maintained its paid-up capital at Rs. 60.00 million, while its net worth improved to Rs. 344.75 million, up from Rs. 304.16 million in the previous year. The data also indicates that the company’s fixed assets slightly decreased to Rs. 84.63 million from Rs. 86.19 million, with total assets reaching Rs. 466.97 million, marking a significant move in asset accumulation.
For the quarter ending September 30, 2025, Sardar Chemical Industries reported sales revenue of Rs. 143.88 million, an increase from Rs. 118.14 million in the same quarter of the previous year. The gross profit for this period was Rs. 56.43 million, reflecting a 39.22% gross profit margin. The company’s earnings per share for the year were reported at Rs. 7.60, down from Rs. 8.72 in the previous year.
The financial results illustrate a challenging year for Sardar Chemical Industries, as the company confronts rising costs and declining profit margins. The current ratio improved to 4.85 from 4.20 last year, indicating a strong liquidity position. However, the total liabilities to equity ratio decreased to 0.35, reflecting decreased leverage. As the company navigates these financial challenges, it remains to be seen how it will strategize to enhance profitability and shareholder value in the coming fiscal year.