PECO Reports Improved Financial Performance Despite Continuing Losses in First Half of FY2020-21
Pakistan Engineering Company Limited (PECO) has announced its financial results for the six-month period ended December 31, 2020, revealing notable improvements in operational performance despite reporting a net loss for the period.
According to the company’s interim financial statements, sales increased to Rs. 166.9 million during the six months ended December 31, 2020, compared to Rs. 158.8 million recorded in the corresponding period of the previous year. The growth in revenue reflects an improvement in business activity and market demand.
The company reported a gross loss of Rs. 16.4 million, a significant reduction from the gross loss of Rs. 82.1 million recorded in the same period last year. Operating loss also improved substantially, declining to Rs. 60.6 million from Rs. 88.0 million in the corresponding period of 2019.
PECO’s loss before taxation and levies stood at Rs. 65.9 million, compared to Rs. 92.0 million in the previous year. After accounting for taxation adjustments, the company reported a net loss of Rs. 65.1 million, showing a marked improvement over the net loss of Rs. 100.0 million reported during the same period last year.
The company’s earnings per share (EPS) improved to a loss of Rs. 11.43 per share, compared with a loss of Rs. 17.57 per share during the corresponding period of the previous year.
On the financial position side, total assets stood at Rs. 15.51 billion as of December 31, 2020. Property, plant, and equipment remained the largest component of the asset base at Rs. 14.50 billion. Current assets amounted to Rs. 700.7 million, while cash and bank balances increased significantly to Rs. 55.1 million from Rs. 31.4 million at the beginning of the reporting period.
The company generated positive cash flows from operating activities amounting to Rs. 23.8 million, compared with a negative operating cash flow of Rs. 27.7 million during the corresponding period of the previous year. This improvement contributed to a stronger liquidity position at the end of the period.
PECO’s equity position remained supported by a substantial revaluation surplus on fixed assets, which stood at Rs. 14.44 billion. However, accumulated losses increased to Rs. 1.59 billion, reflecting the company’s continued profitability challenges.
The Board of Directors did not recommend any cash dividend, bonus shares, rights shares, or any other corporate action for the period under review. Management remains focused on improving operational efficiency, strengthening cash flows, and enhancing the company’s long-term financial sustainability.
The financial results indicate that while PECO continues to face challenges, the company has made meaningful progress in reducing losses and improving operational cash generation during the first half of FY2020-21.
