Pakistan Engineering Company Limited (PECO) has released its financial results for the six-month period ended December 31, 2018, highlighting significant revenue growth while continuing to face operational and profitability challenges.

Revenue Performance

During the six-month period, PECO recorded sales revenue of Rs. 160.0 million, representing a substantial increase compared to Rs. 74.6 million reported during the corresponding period of the previous year. The increase reflects improved business activity and stronger market demand for the company’s products and services.

Profitability Overview

Despite higher revenues, the company reported a gross loss of Rs. 103.8 million, primarily due to the cost of sales exceeding revenue generation. Operating losses stood at Rs. 158.4 million, compared with a relatively lower operating loss in the same period last year.

After accounting for finance costs and taxation adjustments, PECO recorded a net loss after tax of Rs. 330.3 million for the six-month period. Basic and diluted loss per share was reported at Rs. 58.05.

Financial Position

As of December 31, 2018, the company reported total assets of Rs. 15.84 billion. Property, plant, and equipment remained the largest component of the asset base, valued at approximately Rs. 14.57 billion.

Current assets amounted to Rs. 944.7 million, while current liabilities stood at Rs. 493.7 million. The company also maintained a significant surplus on revaluation of fixed assets amounting to Rs. 14.48 billion.

Cash Flow Highlights

PECO generated positive cash flows from operating activities totaling Rs. 28.2 million during the period. However, investment activities resulted in a cash outflow of Rs. 62.7 million, mainly due to capital expenditures and investment-related payments.

Cash and cash equivalents at the end of the period were recorded at Rs. 9.7 million.

Corporate Actions

The Board of Directors did not recommend:

  • Cash dividend
  • Bonus shares
  • Right shares
  • Any other corporate action

The company also confirmed that there was no other price-sensitive information requiring disclosure.

Outlook

While PECO achieved notable growth in sales revenue, management continues to focus on addressing operational inefficiencies and strengthening financial performance. The company’s substantial asset base and ongoing operational activities provide a foundation for future business recovery and sustainable growth initiatives.

Investors and stakeholders are encouraged to review the complete financial statements for a detailed understanding of the company’s financial position and performance.