Pakistan Engineering Company Limited (PECO) has released its financial results for the three-month period ended September 30, 2023, revealing continued operational challenges as the company reported a net loss after tax of Rs. 40.44 million.
According to the company’s quarterly financial statement, sales revenue stood at Rs. 6.3 million during the quarter, compared with Rs. 8.12 million in the corresponding period of the previous year. The decline in revenue, combined with a cost of sales of Rs. 11.75 million, resulted in a gross loss of Rs. 5.45 million.
PECO’s operating performance remained under pressure due to significant administrative and operating expenses. Total operating expenses reached Rs. 26.60 million, contributing to an operating loss of Rs. 31.77 million. Despite recording other operating income of Rs. 288,000, the company was unable to offset its growing cost burden.
After accounting for finance costs and taxation, the company posted a net loss after tax of Rs. 40.44 million, compared with a profit after tax of Rs. 12.77 million reported in the same quarter last year. Consequently, the basic and diluted loss per share stood at Rs. 7.11, compared with earnings per share of Rs. 2.24 in the corresponding period of 2022.
On the balance sheet side, PECO reported total assets of approximately Rs. 15.01 billion as of September 30, 2023. The company’s equity amounted to Rs. 12.35 billion, supported primarily by a substantial surplus on the revaluation of fixed assets. However, accumulated losses increased to Rs. 2.13 billion during the quarter.
Cash and cash equivalents at the end of the reporting period were recorded at Rs. 14.99 million, slightly lower than Rs. 15.04 million at the beginning of the quarter. Operating activities consumed Rs. 55,000 in cash during the period.
The Board of Directors announced that no cash dividend, bonus shares, right shares, or other corporate actions were recommended for the quarter.
The latest financial results indicate that PECO continues to face profitability challenges amid weak sales performance and ongoing operational costs. Going forward, investors and stakeholders will closely monitor the company’s efforts to improve revenue generation, control expenses, and strengthen its financial position.
