Karachi: Service Industries Limited (SIL) announced the completion of a major business reorganization and provided its financial results for the nine-month period ending September 30, 2024, which revealed a mix of robust dividend payments and some financial strains.

According to information available from the Pakistan Stock Exchange (PSX), the directors of SIL have effectively finalized the demerger and restructuring process initially approved by the board and shareholders in early 2024. The restructuring involved the separation of its Tyre and Retail Undertakings along with Speed (Private) Limited Shares into distinct entities, aimed at streamlining operations and enhancing strategic focus. This strategic move received the green light from the Lahore High Court on June 12, with formalities completed by June 28, marking an effective date of January 1, 2024.

Financially, the nine-month results showcased significant net sales amounting to PKR 12,902.22 million, a gross profit of PKR 701.61 million, and an operating profit of PKR 1,628.59 million. However, the period concluded with a net loss after tax of PKR 165.89 million, reflecting a loss per share of PKR 3.53. The financial outcomes post-restructuring reveal the exclusion of figures from the now-separated Tyre and Retail undertakings.

Dividend income from subsidiaries has been a highlight, with significant dividends accrued from Service Global Footwear Limited and other subsidiaries including Service Long March Tyres (Private) Limited, which distributed dividends for the first time. The total dividends received from the subsidiaries in the third quarter stood at PKR 1,288 million.

Looking ahead, SIL remains cautiously optimistic amid improving macroeconomic indicators such as single-digit inflation and a resurgent policy rate, coupled with the resumption of the IMF's financing program. These factors have bolstered the PSX index above the 85,000 mark. However, challenges like new tax implementations, rising electricity costs, and broader geopolitical tensions are likely to impact future performance.

In their acknowledgment section, SIL's directors expressed gratitude towards shareholders for their continuous support and highlighted the dedicated efforts of employees in driving the company forward amidst challenging times.