Pakistan Engineering Company Limited (PECO) has announced its financial results for the nine-month period ended March 31, 2020, revealing continued operational and financial pressures despite maintaining a substantial asset base.
According to the company’s interim financial statements, PECO generated sales revenue of Rs175.6 million during the period, slightly lower than the Rs178.4 million recorded in the corresponding period of the previous year. However, the company reported a gross loss of Rs184.1 million compared to a gross loss of Rs99.9 million a year earlier.
Operating performance remained under pressure, with the company posting an operating loss of Rs199.3 million. Administrative expenses continued to represent a significant portion of overall costs, while finance costs amounted to Rs6.7 million during the period.
After accounting for taxation, PECO reported a net loss of Rs236.4 million, compared with a net loss of Rs342.8 million in the same period of the previous year. The basic and diluted loss per share stood at Rs41.55.
On the balance sheet side, PECO maintained total assets of approximately Rs15.5 billion as of March 31, 2020. Property, plant, and equipment remained the company’s largest asset category at Rs14.5 billion. Current assets totaled Rs655 million, including inventories, investments, receivables, and cash balances.
The company’s equity position reflected accumulated losses of Rs1.56 billion. Nevertheless, a substantial surplus on the revaluation of fixed assets helped support the overall equity structure.
Cash flow statements showed net cash used in operating activities of Rs20.1 million during the period. Cash and cash equivalents decreased from Rs44.8 million at the beginning of the period to Rs24.2 million by March 31, 2020.
PECO’s Board of Directors also announced that no cash dividend, bonus shares, right shares, or other corporate actions were recommended for the period under review.
The financial results indicate that while the company continues to preserve its asset base, profitability and operational efficiency remain key challenges. Future performance will depend on PECO’s ability to strengthen revenue generation, improve cost management, and optimize the utilization of its existing assets.
