PECO Reports Improved Financial Performance Despite Continuing Losses in First Half of FY2024-25

Pakistan Engineering Company Limited (PECO) has announced its financial results for the six-month period ended December 31, 2024, showing notable improvement in operational performance despite remaining in a loss position.

According to the company’s financial statement, sales increased significantly to Rs. 26.7 million during the first half of FY2024-25, compared to Rs. 12.8 million recorded during the corresponding period last year. The growth in revenue reflects improved business activity and stronger market demand.

PECO reported a net loss after taxation of Rs. 37.0 million for the six months ended December 31, 2024, compared with a loss of Rs. 56.7 million in the same period of the previous year. This represents a reduction of approximately 35 percent in overall losses, indicating progress in the company’s efforts to improve financial performance.

Loss per share also improved, decreasing to Rs. 6.51 from Rs. 9.96 recorded during the corresponding period of 2023. While the company continued to face challenges related to operating costs and gross losses, the reduction in losses demonstrates a positive trend in financial management.

On the balance sheet side, PECO maintained a strong asset base with total assets of Rs. 39.64 billion as of December 31, 2024. The company’s equity stood at Rs. 36.98 billion, supported primarily by the revaluation surplus of fixed assets.

The company’s liquidity position strengthened during the period. Cash and bank balances increased to Rs. 18.3 million from Rs. 9.5 million at the beginning of the financial year. Net cash generated from operating activities amounted to Rs. 8.8 million, a substantial improvement compared to the same period last year.

The Board of Directors did not recommend any cash dividend, bonus shares, right shares, or other corporate actions for the period under review.

Going forward, PECO’s ability to sustain revenue growth, improve operational efficiency, and further reduce losses will remain key factors for investors and stakeholders monitoring the company’s financial recovery efforts.