Karachi: Pak Leather Crafts Limited (PSX: PAKL) reported a significant financial setback for the nine months ended March 31, 2026, posting a net loss of Rs10.95 million, compared with a modest profit of Rs184,214 recorded during the corresponding period last year. The company attributed its weak performance to a sharp decline in sales and negative gross margins.
According to the company’s financial results, net sales fell dramatically to Rs6.55 million during the nine-month period, down from Rs43.08 million a year earlier. Meanwhile, the cost of sales exceeded revenue, resulting in a gross loss of Rs2.50 million, compared with a gross profit of Rs8.99 million in the same period last year.
Pak Leather Crafts generated Rs1 million in rental income during the period, providing some support to overall revenue. However, administrative expenses of Rs8.83 million, selling and distribution expenses of Rs541,569, and finance costs of Rs113,317 outweighed the additional income, leading to a pre-tax loss of Rs10.98 million. After accounting for taxation, the company’s net loss stood at Rs10.95 million.
For the third quarter ended March 31, 2026, the company reported a quarterly net loss of Rs4.29 million, compared with a net profit of Rs434,440 in the corresponding quarter of the previous year. Quarterly sales were insufficient to cover production costs, resulting in a gross loss of Rs1.76 million.
The company’s loss per share (LPS) for the nine-month period widened to Rs3.22, compared with earnings per share (EPS) of Rs0.05 in the same period last year. For the third quarter alone, the company posted an LPS of Rs1.26, versus EPS of Rs0.13 a year earlier.
The Board of Directors, in its meeting held on April 28, 2026, announced no cash dividend, bonus shares, right shares, or any other corporate action for shareholders.
