Pakistan Engineering Company Limited (PECO) has announced its financial results for the three-month period ended September 30, 2019, revealing continued operational and financial challenges.
According to the company’s quarterly financial statements, sales revenue stood at Rs. 75.7 million, compared with Rs. 103.3 million recorded during the corresponding period last year. The decline in revenue contributed to a gross loss of Rs. 46.0 million, significantly higher than the gross loss of Rs. 23.1 million reported in the same quarter of the previous year.
The company reported other operating income of Rs. 36.2 million, which partially offset operating expenses. As a result, operating loss improved to Rs. 31.6 million from Rs. 44.0 million recorded in the corresponding period of 2018.
After accounting for finance costs and deferred taxation, PECO posted a net loss after taxation of Rs. 66.2 million, compared with a loss of Rs. 40.6 million during the same period last year. Basic and diluted loss per share increased to Rs. 11.63, compared with Rs. 7.13 in the previous corresponding quarter.
On the balance sheet side, total assets stood at approximately Rs. 15.6 billion as of September 30, 2019. Property, plant and equipment remained the company’s largest asset category at Rs. 14.54 billion. Current assets declined to Rs. 742.7 million from Rs. 861.5 million reported at the end of June 2019.
The company’s accumulated losses increased to Rs. 1.397 billion, while total equity amounted to Rs. 13.13 billion, largely supported by a substantial revaluation surplus on fixed assets.
Cash flow from operating activities remained under pressure, with net cash used in operations totaling Rs. 44.3 million during the quarter. Cash and cash equivalents declined sharply to Rs. 268,000 at the end of September 2019, compared with Rs. 44.8 million at the beginning of the period.
The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or other corporate actions for the quarter.
The results highlight the challenges facing PECO as it continues efforts to improve operational performance and strengthen its financial position in a competitive industrial environment.
