PECO Announces Financial Results for the Nine Months Ended March 31, 2021

Pakistan Engineering Company Limited (PECO), a state-owned engineering enterprise operating under the Ministry of Industries and Production, has released its financial results for the nine-month period ended March 31, 2021.

According to the company’s announcement, the Board of Directors approved the financial statements during a meeting held on June 6, 2021. The company declared no cash dividend, bonus shares, right shares, or any other corporate entitlement for shareholders during the reporting period.

Financial Performance Overview

PECO reported sales revenue of Rs. 168.49 million for the nine months ended March 31, 2021, compared to Rs. 175.58 million during the corresponding period of the previous year. Despite generating revenue, the company continued to face significant operational challenges.

The gross loss stood at Rs. 132.40 million, while operating losses increased to Rs. 224.54 million. After accounting for finance costs and taxation, PECO recorded a net loss after tax of Rs. 262.68 million, compared to a loss of Rs. 236.42 million in the same period last year.

Basic and diluted loss per share was reported at Rs. 46.16, reflecting the company’s ongoing financial difficulties.

Financial Position

As of March 31, 2021, PECO’s total assets amounted to Rs. 15.44 billion. The company’s largest asset category remained property, plant, and equipment valued at approximately Rs. 14.49 billion.

Current assets totaled Rs. 633.90 million and included inventories, trade receivables, advances, tax refunds, and cash balances. Cash and cash equivalents increased slightly to Rs. 35.25 million at the end of the reporting period.

On the liabilities side, total current liabilities stood at Rs. 720.31 million, while non-current liabilities amounted to Rs. 205.02 million.

Cash Flow Performance

The company generated positive cash flow from operations of Rs. 3.88 million during the period, a notable improvement compared to the cash outflow recorded in the corresponding period of the previous year. Cash and cash equivalents increased from Rs. 31.37 million at the beginning of the period to Rs. 35.25 million by March 31, 2021.

Outlook

The financial results highlight PECO’s continued efforts to manage its operations amid ongoing challenges. While the company achieved positive operational cash generation and maintained a substantial asset base, recurring losses indicate the need for strategic measures aimed at improving profitability and long-term sustainability.

Investors and stakeholders will closely monitor future developments as PECO works toward strengthening its financial position and operational performance.