Dewan Khalid Textile Mills Limited reported a net loss of Rs17.92 million for the half year ended December 31, 2024, showing a modest improvement from the Rs20.03 million loss recorded in the corresponding period of the previous year.
According to the company’s financial statements, the results were presented to the Pakistan Stock Exchange following a board meeting held on August 11, 2026. The company did not recommend any cash dividend, bonus shares, right shares or other corporate action.
Loss narrows during the period
Dewan Khalid Textile Mills posted an operating loss of Rs19.70 million during the six-month period, compared with an operating loss of Rs19.88 million in the same period of 2023.
The company reported no sales revenue during the period, while the cost of sales stood at approximately Rs15.71 million. Administrative and general expenses amounted to around Rs3.99 million.
Finance costs fell sharply to just Rs561,000, compared with approximately Rs4.70 million a year earlier. The company also recorded no other income during the period, whereas it had reported other income of around Rs2.53 million in the previous corresponding period.
After accounting for deferred tax of approximately Rs1.78 million, the company’s loss after taxation stood at Rs17.92 million, compared with Rs20.03 million in the same period last year. Loss per share improved to Rs1.87, against Rs2.08 previously.
Financial position remains challenging
The balance sheet highlights the financial pressure facing the company. As of December 31, 2024, Dewan Khalid Textile Mills had total assets of approximately Rs729.74 million, including property, plant and equipment worth around Rs718.77 million.
However, current assets were only about Rs10.97 million, while current liabilities stood at approximately Rs712.17 million. The company’s accumulated losses also increased to around Rs918.68 million by the end of the period.
Cash position remains limited
The cash flow statement shows that the company generated a small net cash inflow of Rs51,031 from operating activities during the six months, compared with Rs351,262 in the previous year.
There was no cash flow from investing activities, while financing activities resulted in a small cash outflow of Rs561,000. Consequently, cash and cash equivalents stood at approximately Rs869,952 at December 31, 2024, down from around Rs1.14 million a year earlier.
Auditors flag going-concern concerns
A key point in the financial statements is the auditors’ observation regarding the company’s going-concern assumption. The review report draws attention to the cessation of operations, default in repayment of instalments of restructured liabilities and related non-provisioning of mark-up.
This indicates that, despite the reduction in the reported loss, the company continues to face significant financial and operational challenges.
Overall, Dewan Khalid Textile Mills managed to reduce its half-year loss compared with the previous year, but the absence of sales, substantial accumulated losses and a large gap between current assets and current liabilities continue to underline the difficult financial position of the company.
