PECO Reports Rs. 59.9 Million Loss for Quarter Ended September 30, 2020

Pakistan Engineering Company Limited (PECO) has announced its financial results for the three-month period ended September 30, 2020. According to the company’s quarterly financial statements, PECO continued to face financial challenges despite recording a significant increase in sales revenue compared to the corresponding period of the previous year.

During the quarter, the company generated sales of Rs. 120.01 million, reflecting substantial growth from Rs. 75.70 million recorded in the same period of 2019. However, the cost of sales remained higher than revenue, resulting in a gross loss of Rs. 14.46 million.

Operating expenses, including administrative, selling and distribution, and freight-related costs, further impacted profitability. Consequently, PECO reported an operating loss of Rs. 50.63 million for the quarter.

After accounting for finance costs and taxation, the company recorded a net loss after tax of Rs. 59.95 million, compared with a loss of Rs. 66.17 million during the corresponding period last year. Basic and diluted loss per share improved slightly to Rs. 10.53 compared with Rs. 11.63 in the prior-year period.

On the balance sheet side, total assets stood at approximately Rs. 15.54 billion as of September 30, 2020. Property, plant, and equipment remained the company’s largest asset category at Rs. 14.51 billion. Current assets totaled Rs. 713.31 million, including inventory, receivables, tax refunds, and cash balances.

The company’s accumulated losses increased to Rs. 1.59 billion, while shareholders’ equity remained supported by a substantial revaluation surplus on fixed assets amounting to Rs. 14.45 billion.

PECO’s cash flow position showed improvement during the quarter, with net cash generated from operating activities reaching Rs. 46.85 million. Cash and cash equivalents increased to Rs. 78.72 million at the end of September 2020, compared with Rs. 31.37 million at the beginning of the period.

The Board of Directors announced that no cash dividend, bonus shares, right shares, or other corporate actions would be issued for the quarter under review.

While the company continues to face profitability challenges, the increase in sales revenue and positive operating cash generation indicate efforts toward improving business performance and financial stability.